WHEREAS, the University contributes to a statutory pension system for public school employees (known as the Michigan Public School Employees Retirement System, known as “MPSERS”) which provides pension and retiree health benefits to eligible University employees; and


WHEREAS, the University provides pension benefits to its other employees (who are not eligible for MPSERS) under is Optional Retirement Plan (“ORP”); and


WHEREAS, the University has hired and may in the future hire certain employees who had previously become eligible for and had commenced MPSERS pensions and retiree health benefits (herein called “MPSERS retirants”), for whom the University has not been providing any pension contributions; and


WHEREAS, the Board believes that the University should provide pension contributions for MPSERS retirants who, on and after January 1, 2006, work (1) as full time faculty and are ineligible for the ORP and (2) as regular full-time staff employees assigned to work 1,560 hours or more per calendar year, excluding overtime, and as well as regular part-time staff employees assigned to work 20 hours per week or more, excluding overtime and are ineligible for the ORP; and


WHEREAS, the Vice President for Finance and Administration has presented a defined contribution retirement plan captioned Northern Michigan University – Non-ORP Plan [“Non-ORP”] providing University contributions to be allocated to retirement accounts of eligible employees who are MPSERS retirants, and he has described the projected costs and other details of the Non-ORP and members of the Board have had the opportunity to investigate, ask questions and obtain additional information, and the Board has determined that adoption of the Non-ORP is in the long-term best interests of the University; and


WHEREAS, the Board intends to continue the Non-ORP indefinitely, but reserves the right to amend or terminate such Plan in the future (subject to applicable collective bargaining obligations) provided that no such amendment or termination shall cut-back or curtail benefits accrued through services rendered prior to the effective date of such action.




1.  Effective January 1, 2006, the University adopts the Non-ORP, in the form presented to the meeting, subject to such minor modifications in language as shall be approved by the President of the University.


2.   The Board authorizes the President of the University to execute documents which are necessary or appropriate to give effect to the foregoing resolution.


3.   MPSERS retirants have a comprehensive health insurance plan available to them and their dependents.  Therefore, MPSERS retirants eligible to receive paid health insurance benefits through MPSERS are required to enroll, or provide proof of other coverage, and will not be eligible for NMU’s health care benefits.