Full-time, regular faculty and full-time administrators have a choice between the Michigan Public School Employees Retirement System (MPSERS) which is a defined benefit retirement plan or the College’s TIAA/CREF optional retirement program (ORP) which is a defined contribution retirement plan.  Both plans require an employee tax-deferred payroll contribution.

MPSERS employee contribution (MIP) rate varies according to when the employee enrolled in the MIP program.

The contribution rate is 3.9% of pre-tax salary if the employee elected MIP before January 1, 1990 or for Basic Plan participants who converted to MIP by January 1, 1993.  

Employees under the MIP Graded scale make their tax-deferred contribution based on the following beginning on July 1 of each year:

3% is deducted from all pre-tax earnings until the employee has earned $5,000; once the employee has earned $5,000, the percentage withheld changes to 3.6% until the employee has earned $15,000; after the employee has earned $15,000, the percentage withheld changes to 4.3% and remains at 4.3% until June 30. On July 1 of each year progression through the above withholding scale begins again. 

Individuals who began their participation in the MPSERS system after July 1, 2008, make their tax-deferred contribution based on the following scale beginning on July 1 of each year and are part of the MIP Plus program:

3% is deducted from all pre-tax earnings until the employee has earned $5,000; once the employee has earned $5,000, the percentage withheld changes to 3.6% until the employee has earned $15,000; after the employee has earned $15,000, the percentage withheld changes to 6.4% and remains at 6.4% until June 30. On July 1 of each year progression through the above withholding scale begins again.

TIAA/CREF optional retirement program employee contribution is 4% of the employee's gross wages. KCC contributes 10.5% of the employee's gross wages to the employee's account.

All other employees, except student employees, participate in the Michigan Public School Employees Retirement System.  Please see information above for MPSERS employee contributions. For more information regarding the Michigan Public School Employees System call MPSERS at:

Telephone: 800 353-6932 or 800 381-5111
Visit their website: www.michigan.gov/ors/