I first began working before July 1, 2008

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If you began working for a Michigan public school reporting unit before July 1, 2008, your eligibility for an insurance premium subsidy benefit depends on if you are an active member or deferred member at the time of your retirement.

Active member at retirement

For subsidy eligibility, you're considered active if you earned one-tenth (0.1) or more years of service in each of the five school fiscal years immediately before your retirement effective date, or at least one-half (0.5) years of service within the two school fiscal years immediately before your retirement effective date. In either case, you must be employed in the month before your retirement effective date (click here for details on how you earn years of service) unless the summer birthday provision applies or your employer granted you an unpaid leave of absence due to a mental or physical disability supported by your personal physician.

When you retire, you will become eligible for the maximum premium subsidy benefit allowed by law as of your retirement effective date (unless you're subject to a delayed premium subsidy).

Deferred Member at retirement

You are deferred if you are vested but leave public school employment before you meet the age requirement for retirement, and did not take a refund. As a deferred retiree, the amount of the insurance premium subsidy benefit you qualify for will depend on when you terminated your public-school employment and how many years of credited service you have.

  • Terminated after Oct. 31, 1980, with at least 21 years of service. With 21 years of credited service, you will get 10% of the maximum subsidy (not 10% of the premium) allowed by law. For each additional year of service, you will get an additional 10% of the subsidy (not the premium). For example, with 21 years of service, you'll get 10% of the subsidy, and with 25 years of service, you'll get 50% of the subsidy. If you retire with 30 or more years of service, you'll get 100% of the subsidy allowed by law. Click here for the current rates.
  • Terminated after Oct. 31, 1980, with fewer than 21 years of service. You may enroll for the health, prescription drug, and dental and vision insurance, but you must pay the entire premium.
  • Terminated on or before Oct. 31, 1980. You're entitled to 100% of the subsidy allowed by law. Click here for the current rates.