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POL 5.211 Retirement Benefit Plan

For staff planning retirement, Kirtland Community College offers certain options and benefits. The college shall contribute to either the Michigan Public School Employees Retirement System (MPSERS), or an optional retirement plan (ORP), as required by law. Employees under administrative contract may elect either MPSERS or an ORP. Eligible employees shall designate the plan in which they wish to participate within the first 90 days of employment. All other classified staff are enrolled under MPSERS. Staff are advised to contact the state office of retirement services, or their optional retirement plan provider, at least six (6) months prior to their anticipated retirement date so as to determine their actual eligibility for retirement. In order to receive the retirement benefits, one must submit a written non-revocable signed letter of resignation stipulating the intended date of retirement. Written confirmation of eligibility must be provided to the college by the retirement service provider. A Retiree cannot draw unemployment compensation.

SICK LEAVE PAYOUT BENEFIT

Unused sick leave for all administrative or classified staff confirmed eligible for full retirement benefits under either MPSERS or an ORP shall be paid at 50% of the employee’s daily rate of pay at the time of retirement. The computation shall be based upon 260 days, divided into the annual base salary.

EARLY RETIREMENT OPTION

Employees meeting certain guidelines may request early retirement from Kirtland. To be eligible, one must be enrolled in MPSERS and shall be at least 55 years of age with a minimum of ten (10) years of service at Kirtland Community College, OR at least 52 years of age with a minimum of fifteen (15) years of service at Kirtland Community College. Employees under an ORP are not eligible for this provision.

For those eligible, the college will purchase service credit as permitted by and in accord with the Public School Employees Retirement Act. The college will pay up to 5% of the employee’s higher full-time college fiscal year compensation received at the time payment is made, multiplied by the number of years of credit the employee wishes to purchase, not to exceed three years.

October 18, 1990

Revised April 10, 2003