I first began working on or after July 1, 2008

<< Back to Understanding Premium Subsidy Eligibility

If you began working for a Michigan public school reporting unit after July 1, 2008, you are eligible for a graded subsidy based on career length - the longer you work, the greater your premium subsidy is, up to the maximum subsidy allowed by law, currently set at 80%. You must have at least 10 years of service to qualify for any subsidy (see Qualifying for Your Pension).

  • MIP 46 with 30. If all of your service credit is earned (not purchased), as of your retirement effective date, you will be eligible for the maximum subsidy allowed by law. If you have earned at least 25 years of service and have purchased service to reach 30 years of service, you will have a delayed subsidy. If a delayed subsidy applies, your subsidy will begin at age 60 or the age you would have been eligible to retire if you had not made the service credit purchase, whichever happens first.
  • MIP 60 with 10. If, as of your retirement effective date, you have between 10 and 23 total years of service, a graded subsidy applies. With 10 years of service, your subsidy will be 30% of the premium. The subsidy increases by an additional 4% of the premium for each additional year of service, up to the maximum subsidy allowed by law.

INSURANCE SUBSIDY RATES
MIP 60 with 10

Years % of premium Years % of premium Years

% of premium

10 30 15 50 20 70
11 34 16 54 21 74
12 38 17 58 22 78
13 42 18 62 23 80
14 46 19 66  
  • MIP 60 with 5. The insurance premium subsidy is not available to retirees with fewer than 10 years of service.
  • Early Reduced Provision. If you have at least 25 years of earned (not purchased) service as of your retirement effective date, you will qualify for the maximum subsidy allowed by law when you retire. If you have fewer than 25 years of earned service as of your retirement effective date, you will qualify for the graded subsidy when you reach age 60.