6.3.2 MPSERS

Michigan Technological University will continue Michigan Public School Employees Retirement System (MPSERS) retirement contributions for eligible employees.

New employees hired after January 1, 1996, unless they have worked in one of the MPSERS university systems, are not eligible to participate in MPSERS, but may be eligible to participate in the TIAA-CREF program. Check with the Benefits Office if you have questions.

MPSERS Retirement Severance Pay Plan

Each participant prior to January 1, 1996, who retires on or after October 19, 1992, and satisfies the following requirements will be eligible to elect the severance pay program (which is 2% x nine month salary x years of service) under the plan after retirement:

1. The employee has (1) accumulated eighty points or (2) attained age sixty-five with a minimum of 10 years of service for the employer; and
2. The employee has not elected medical benefits under the Retirement Medical Benefit Plan for Certain Michigan Technological University Faculty, Professional Staff and Non-Bargaining, Non-Exempt Employees.

For purposes of eligibility, years of service has the same meaning as in the Michigan Technological University Retirement Benefits Program and an employee's points are determined by adding his or her age plus years of service with the employer.

If an employee has met the plan's eligibility requirements but dies before retiring, the employee's surviving spouse may elect severance pay under the plan.