Buying Years

You’ve probably heard about “buying years” from veteran colleagues. What they’re talking about is the opportunity to buy service credit to supplement the service credit you accumulate through teaching. Buying years will increase your pension and, in some cases, make you eligible to retire sooner.

On January 1, 2004, MPSERS decided that the cost of buying service credit for time lost to maternity, paternity, child-rearing and nonpublic education employment will be based on your age and years of service. Previously, cost was based on years of service only.

Now, you’re probably thinking that your retirement is a long way off. You’re too preoccupied with surviving today—let alone lasting until retirement age. But as a member of the Michigan Public School Employees Retirement System (MPSERS), it’s crucial that you consider buying service credit now before the costs increase again.

As a result, most MEA members saw a significant cost increase.

For more information go to www.michigan.gov/orsschools .

Updated: February 18, 2009 7:33 PM