Who can buy
- At least 2 years of service first. MCL 38.1360; Your Retirement Plan (R0611C, May 2017; dated), p. 24
- Purchases must be initiated while active in the DB plan and paid off before the retirement effective date / termination. Your Retirement Plan (R0611C, May 2017; dated), pp. 24, 28-29
- Pension Plus and Pension Plus 2 members cannot purchase or transfer service. MCL 38.1381c(4)
- Universal buy-in (up to 5 years at actuarial cost) could not be initiated after Sept. 29, 2017 at 5 p.m.; it cannot count toward the 10-year minimum or MIP 30-year retirement before 46. MCL 38.1369f(1)-(3), (5)
Types of service and costs
| Type | Cost | Limit |
|---|---|---|
| Parental leave | Actuarial cost | 5 years |
| Nonpublic educational service | Actuarial cost | 5 years |
| Out-of-system public education service post-1974 | 5% of highest previous fiscal year salary | 15 years on a matching basis |
| Active duty military (intervening) | No charge in most cases | 6 years |
| Active duty military (nonintervening) | 5% of highest previous fiscal year salary | 5 years (6 combined) |
| Sabbatical leave post-1981 | 5% of highest previous fiscal year salary | 1 year per sabbatical |
Check with MPSERS From ORS's 2017 handbook (dated). Your Retirement Plan (R0611C, May 2017; dated), p. 26, Service Credit Costs and Limits (2017; UBI since closed by MCL 38.1369f(5))
A few details (what buying service costs, refund interest, some death and disability rules) are only in ORS's May 2017 handbook.
We show them labeled as dated. Check the current rules with ORS.
Service credit purchase types and costs, pay-period caps other than weekly/biweekly, refund interest, the default survivor provision, and some disability details have no newer saved source.Most purchased credit counts only once vested and, for match-type credit, only up to the service earned in MPSERS. Your Retirement Plan (R0611C, May 2017; dated), pp. 24-25
Service bought before Feb. 1, 2013 (or under a payment plan in effect then) and certain military / WWC credit counts at 1.5%; service bought on or after Feb. 1, 2013 counts at 1.25% under the default choice. MCL 38.1384b(1)(b)-(d), (2)(b)
The Reciprocal Retirement Act (1961 PA 88) can combine other Michigan governmental service to qualify (not to increase the benefit). ORS web page: Qualifying for Your Pension, Counting Other Michigan Government Public Service; Planning Your Retirement (R0613C, 5/26), p. 5
What a year adds
Each year adds 1.5% of your final average compensation a year. With a $35,000 average that's $525 a year, about $43.75 a month (less at 1.25%). Planning Your Retirement (R0613C, 5/26), p. 10, Calculating your pension ('FAC x Pension factor x YOS'); MPSERS annual report FY2025, p. 25, Regular Retirement; MCL 38.1384(1)
The retiree health trap
Credit purchased on or after July 1, 2008 that lets you retire earlier delays the insurance subsidy to age 60 or the date you would have been eligible without it, whichever comes first. Planning Your Retirement (R0613C, 5/26), p. 26, Delayed subsidy; MPSERS annual report FY2025, p. 30; MCL 38.1391(10)
- Jon needs his 2 purchased years to qualify for the early reduced pension, so his subsidy is delayed two years. Delay: 2 years.
- Sara could retire early reduced without the purchase; she uses it to retire with the full pension, so her subsidy is not delayed. Delay: 0 years.
For MIP members with 30 years, R0613C says anyone who bought service must be at least 46; ORS's web page and the law say this applies to universal buy-in credit.
If you enter purchased years that you need to reach 30, we apply the age-46 minimum.
R0613C (Rev. 5/26) p. 4 says 'If you purchased service credit, you must be at least age 46'; the ORS Qualifying page and MCL 38.1369f(3) say universal buy-in credit. The engine applies the minimum whenever purchased years are needed to reach 30 (the broader reading).Related guides
Bought years go into the pension formula like earned years. They can let you retire earlier, but check the retiree health delay before you buy.
What the sources say
- Basic and MIP members need at least 2 years of service before buying credit, must buy while still working, and must pay it off before retiring.MCL 38.1360; Your Retirement Plan (R0611C, May 2017; dated), pp. 24, 28-29
- Pension Plus and Pension Plus 2 members can't buy or transfer service credit.MCL 38.1381c(4)
- Universal buy-in (up to 5 years for anyone) closed on Sept. 29, 2017.MCL 38.1369f(5)
- Out-of-state public school service after 1974 costs 5% of your highest previous fiscal-year salary per year, up to 15 years, credited only as you earn matching Michigan service.Your Retirement Plan (R0611C, May 2017; dated), pp. 24-26
- Under the default 2012 choice, service bought on or after Feb. 1, 2013 counts at 1.25%.MCL 38.1384b(2)(b)
Questions
Can I buy service credit in MPSERS?
Basic and MIP members can, after at least 2 years of service, while still working, and must pay it off before retiring. Pension Plus and Pension Plus 2 members can't buy or transfer service.
Can I still buy universal buy-in ("air time")?
No. Universal buy-in couldn't be started after September 29, 2017.
Does buying service affect retiree health?
It can. Credit bought on or after July 1, 2008 that lets you retire earlier delays the insurance subsidy to age 60, or to the date you'd have qualified without it, whichever comes first.
Add purchased years in the calculator →
Unofficial guide. MPSERS and the Office of Retirement Services decide. Get a cost statement from ORS before you buy.
Source: Planning Your Retirement (R0613C), Michigan Office of Retirement Services, Rev. 5/26, pp. 4, 5, 26. Michigan law, 1980 PA 300: MCL 38.1360; MCL 38.1369f; MCL 38.1391; MCL 38.1381c; MCL 38.1384b; MCL 38.1343b. Your Retirement Plan (R0611C), May 2017 (dated). MPSERS Annual Comprehensive Financial Report, FY ended Sept. 30, 2025, p. 30. ORS web pages saved Nov. 12, 2026: Qualifying for Your Pension. Last reviewed .