Social
Security, MPSERS, and TIAA-CREF
| Effective Date: |
09.18.1974 |
Revision Date: |
05.22.1991 |
| Chapter Name: |
Employment
/ Affirmative Action |
Policy Number: |
3.4.2.2 |
| Policy Name: |
Social
Security, MPSERS, and TIAA-CREF |
| A
PDF version of this policy is available
via this link. |
Social
Security:
University employees have social security
coverage. The University matches the
amount it deducts from each employee’s salary to pay for the Social
Security Program. Coverage provides for retirement
benefits, survivor’s benefits, disability
benefits and death benefits.
Michigan Public School Employee's Retirement
Fund:
All non-student employees of Eastern
Michigan University are required to
participate in either the Michigan
Public School Employee’s Retirement Fund
or the optiona1 program TIAA-CREF.
The Michigan Public School Employee's
Retirement Board considers age 60 as
the regular retirement age. The minimum
service requirement is 10 years of full-time
work under this system. A person with
25 years or more of service may leave
public school work regardless of age
and be entitled to a retirement allowance
at age 60. A person with 30 or mare
years of service may start drawing his
allowance at any time after age 55 on
a reduced basis. Disability retirement
is based on the same requirements except
the person does not need to meet the
retirement age .
An employee anticipating retirement
should write the Retirement Office for
application forms as soon as possible,
preferably at the start of the school
year in which he or she plans to retire.
(Michigan Public School Employee's Retirement
Fund, Stevens T. Mason B1dg., Lansing,
Michigan 48913.)
TIAA-CREF:
This is a retirement program under which individual contracts
providing retirement and death benefits for or on behalf
of electing employees are purchased from TIAA-CRE. All
full-time faculty holding ranks of department heads,
professors, associate professors, assistant professors,
instructors, assistant instructors, lecturers and teaching
fellows are eligible. All full-time administrative/professional
members with ranks of AP-l through AP-15 are also eligible.
Eligible employees must decide within
their first 90 days of employment if
they wish to participate in the TIAA-CREF
Program. A decision to participate in
the state system is assumed if not exercised
by the application to participate in
TIAA-CREF and the decision, actual or
assumed, is irrevocable.
RETIREMENT - MICHIGAN PUBLIC SCHOOL
EMPLOYEE'S RETIREMENT FUND
By law, all non-student employees not
eligible or not participating in the
alternate retirement program of Eastern
Michigan University are members of the
system, whether part-time or full-time,
teaching or non-teaching, or paid on
an hourly, daily or annual basis, even
if the funds from which they are paid
are kept separate from other funds.
When the employee decides to retire
under this system, he or she should
contact the Retirement Office as soon
as possible, preferably at the start
of the school year in which he or she
plans to retire. On request, the employee
will be sent the complete set of forms
and a letter of instruction covering
their use. The address is: Michigan
Public School Employee's Retirement
Fund; Postal Sub-Station "B",
Lansing. Michigan 48913.
Regular retirement age is age 60. The
minimum service requirement is the equivalent
of 10 years of full-time work under
this system. A person with 25 or more
years of service may leave public school
work regardless of age and be entitled
to a retirement allowance at age 60.
A person with 30 or more years of service
may, if he or she wishes to do so, start
drawing his or her allowance at any
time after age 55 or on a reduced basis.
Disability retirement is based on the
same requirements as a regular retirement
and the allowance is computed the same
way, except the person applying for
a disability retirement allowance does
not need to meet the age requirement.
Before any employee may qualify for
a retirement allowance, he or she must
have completed 10 years of full-time
employment under this system.
Persons who are eligible for a retirement
allowance cannot receive a refund. Persons
who leave the public school work with
less than 10 years of service may apply
for a refund of employee contributions
(if any). If the funds are left on deposit
they can earn interest at 2½%
per year. Ordinarily refunds are paid
about seven weeks after the end of the
quarter in which the employee is last
paid. Application forms for refunds
may be obtained from the Staff Benefits
Office.
Military service time is creditable
toward retirement if the employee left
the public school service to enter military
service and if he or she returned to
public school service within 24 months
after discharge. Credit toward retirement
is given for sabbatical leave.
Leaves of absence which comply with
all the provisions of the school code
regarding sabbatical leaves shall be
considered as sabbatical leaves for
the purpose of credit toward retirement.
Out-of-system service may be credited
toward retirement; such service must
be paid for on the same basis as though
it had been performed under this system
together with two and a half percent
per year simple interest from the time
the 5ervice was performed until payment
is made. There is no time limit on payment;
payments should be in amounts of $200.00
or more.
If an employee, with 15 or more years
of creditable public school service,
has named beneficiaries, they automatically
are entitled to a retirement allowance.
An employee desiring to make changes
in beneficiaries may do so at any time
by filling out the appropriate form
in the Staff Benefits Office. If the
named beneficiary is someone other than
a widow. widower. or orphaned child,
he or she must have been dependent on
the employee for 50% or more of his
or her support.
The following formula is used to compute
the annual retirement allowance: the
average salary for the best five consecutive
years multiplied one and a half percent
times years of service equals the allowance
per year. (Note: Social Security allowance
is entirely separate.)
RETIREMENT -
OPTIONAL PROGRAM
Participation
An optional TlAA-CREF retirement plan
is hereby established for Eastern Michigan
University. Classes of full-time employees
eligible for participation are as follows:
President and administrative/professional
staff with ranks of AP-l through AP-15,
and other administrative/professional
ranks that may be established in the
future.
University faculty members with ranks
of professors, associate professors,
assistant professors, instructors, assistant
instructors and lecturers.
Participation of all eligible staff
members shall be as follows:
If employed or appointed prior to January
1, 1969, the effective date of this
plan:
Participation in the Michigan Public
School Employees Retirement System may
be continued, or
Participation in the TIAA-CREF retirement
plan while retaining a limited membership
in the Michigan Public School Employees
Retirement System may be elected.
If employed or appointed on or after
January 1, 1969, the effective date
of this plan, participation is required
in either:
The TIAA-CREF retirement plan, or
The Michigan Public School Employees
Retirement System
Eligible staff members must elect to
participate in the TIAA-CREF retirement
plan or the Michigan Public School Employees
Retirement System within 90 days from:
The effective date of the TIAA-CREF
retirement plan, or
The date of his employment, whichever
is later.
Eligible staff members not exercising
the option to participate in the alternate
plan within a 90-day period will be
assumed to have elected participation
in the Michigan Public School Employees
Retirement System only. The actual or
assumed election is irrevocable.
Retirement
Age
As provided on page 77, Retirement
Age, all participants in this retirement
plan shall retire no later than at the
end of the fiscal year in which they
attain age 70.
Contributions
As its contribution, Eastern Michigan
University shall contribute for the
benefit of all eligible employees those
amounts as may be determined by the
Board of Regents.
Such contributions shall be forwarded
to Teachers Insurance and Annuity Association
for the purchase of retirement benefits
for the participant as follows:
At the election of the participant,
either 100 percent, 75 percent, 50 percent,
25 percent or 0 percent of such contributions
will be applied as a premium for a TIAA
retirement annuity contract on the participant's
life.
The balance, if any, of such contributions
will be applied as a premium for a CREF
retirement annuity certificate on the
participant's life.
Leave of Absence
During leave of absence on part pay,
Eastern Michigan University will continue
contributions based on salary paid while
on leave of absence.
RETIREMENT CONTRIBUTIONS
The University contributions for retirement
for all Michigan Public School Employees
Retirement Fund is 16.34% or such
future amount as may be determined
by the MPSERF.
The University contributions for retirement
for employees participating in the optional
retirement program is as follows:
Bargained for Employees:
16.34% less required contributions
for Social Security.
Non-Bargained for Employees:
11% of all earnings.
| Authority
for Creation or Revision: |
|
Minutes of the Board of Regents, September
18,1974; para. .1412M.
Minutes
of the Board of Regents,
December 8, 1976; para. .1728M.
Minutes of
the Board of Regents, May 22, 1991; para.
.4386M.
|
EMU Home | Policy
Manual home page
