Defined Contribution Plans

Defined Contribution Plan (DCP) participation is optional and only available to positions that are defined as eligible in law. At retirement, members receive a lump-sum payment of their invested employee deductions, employer contributions, and accrued interest or dividends. No monthly retirement benefits are available.

A one-time irrevocable election to enroll must be made within 30 days of taking office or commencing employment. An employer is responsible for immediately notifying individuals of their DCP eligibility when an eligible position is accepted. An individual’s choice to participate is documented by completion of a membership election form.

A completed election form must be received by PERA within 60 days of the individual’s start date. An election is permanent for current and future DCP-eligible positions with the same employer. Failure to make a selection or meet these deadlines is an election to opt out of the DCP.  

Governing Body Elected Official

A voting member of the governmental entity, such as city council, county commissioner, mayor, school board, township supervisor, soil and water board, and other boards and commissions. This also applies to anyone appointed to fill a vacant seat until the next election.

Non-governing Elected Official.

This official does not vote on decisions, such as city or township clerk or treasurer and county auditor or attorney. This also applies to those appointed to fill a vacant position until the next election. These positions may choose the Coordinated Plan instead if their monthly earnings exceed $425.

Local Public Official With Earnings Less Than $425 Per Month

An employee appointed (hired) to a non-governing body position to perform governmental functions required of a public officer, such as township and city clerk or treasurer; county auditor, treasurer, or recorder is eligible to participate in DCP if their monthly earnings never exceed $425.

If the $425 minimum salary threshold is exceeded in any future month, the employee is subject to mandatory Coordinated Plan membership until termination of employment. This does not apply to elected public officials or those appointed (selected) to complete the unfinished term of an elected position.

City Manager

Participates in the Coordinated Plan by default but may elect to participate in the DCP or opt out of all PERA coverage with employer approval.

Physician

Participates in the Coordinated Plan by default but may elect to participate in the DCP.

Public Ambulance Service Volunteers and Certain Rescue Squad Personnel

Any new Ambulance Service must submit a completed Ambulance Service Questionnaire to PERA for approval before DCP coverage may be offered.

Firefighters 

Limited to fire departments that do not participate in a fire relief association or PERA Police & Fire, Coordinated, or Statewide Volunteer Firefighter (SVF) Plans.