Mich. Comp. Laws » Michigan Compiled Laws / Chapter 38 / Act 300 of 1980
Michigan Compiled Laws

Mich. Comp. Laws § 38.1303a (2026)

“Compensation” explained.

✓ current as of July 2026
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THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979


Act 300 of 1980


38.1303a “Compensation” explained.

Sec. 3a.

    (1)  Except as otherwise provided in this act, "compensation" means the remuneration earned by a member for service performed as a public school employee.

    (2) Compensation includes salary and wages and all of the following:

    (a) Remuneration earned for all services performed as a public school employee including, but not limited to, teaching, coaching, and participation in extracurricular activities.

    (b) On a current basis, investments made in a tax sheltered annuity for a public school employee as remuneration for service under this act. The remuneration shall be valued at the amount of money actually paid into the annuity.

    (c) All amounts deducted from the pay of a public school employee, including amounts deducted pursuant to the member investment plan.

    (d) Longevity pay.

    (e) Overtime pay for service performed outside of what is considered normal working hours for the affected employee.

    (f) Pay for vacation, holiday, and sick leave while absent from work. As used in this subdivision, "sick leave" includes weekly worker's disability compensation payments received for personal injury in the employ of and while employed by a reporting unit.

    (g) Items of deferred compensation, exclusive of employer contributions to the retirement system.

    (h) Merit pay as established by a reporting unit for the purpose of rewarding achievement of specific performance objectives.

    (3) Compensation does not include any of the following:

    (a) Payments for unused sick or annual leave.

    (b) Bonus payments.

    (c) Payments for hospitalization insurance and life insurance premiums.

    (d) Other fringe benefits paid by and from the funds of employers of public school employees.

    (e) Remuneration paid for the specific purpose of increasing the final average compensation.

    (f) Compensation in excess of an amount over the level of compensation reported for the preceding year except increases provided by the normal salary schedule for the current job classification. In cases where the current job classification in the reporting unit has less than 3 members, the normal salary schedule for the most nearly identical job classification in the reporting unit or in similar reporting units shall be used.

    (4) The retirement board shall require a sworn affidavit from the member that final compensation does not include remuneration paid either directly or indirectly for actual or anticipated expenses.

    (5) Based upon information and documentation provided by the member, the retirement board shall determine both of the following:

    (a) Whether any form of remuneration paid to a member is identified in this section.

    (b) Whether any form of remuneration that is not identified in this section should be considered compensation reportable to the retirement system under this section.

    (6) In any case where a petitioner seeks to have remuneration included in compensation reportable to the retirement system, the petitioner shall have the burden of proof.

History: Add. 1996, Act 268, Imd. Eff. June 12, 1996

PopularName Notes:

Act 300
Notes of Decisions
Cited in 10 cases (3 in the last 5 years), 1996–2024 · leading case: Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005).
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Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). · cites it 16× “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). · cites it 6× “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
Adrian Sch. Dist. v. Michigan Pub. Sch. Employees' Ret. Sys., 582 N.W.2d 767 (Mich. 1998). · cites it 6× “§ 38.1303a; M.S.A. § 15.893(113a). [7] A member totally and permanently disabled by a work-related injury may receive service credit for the time worker's compensation benefits are paid if the member recovers and returns to work.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). · cites it 85× “This case pertains to MCL 38.1303a’s definition of “compensation.”
Ronan v. Michigan Pub. Sch. Employees Ret. Sys., 629 N.W.2d 429 (Mich. Ct. App. 2001). “at 337; MCL 38.1303a. The Adrian School majority concluded that this legislative amendment did not suggest a change in legislative intent regarding whether such payments should be considered compensation but, instead, clarified the consistent intent of the statute that those…”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). · cites it 33× “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). · cites it 33× “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Sch. Dist. for the City of Adrian v. Michigan Pub. Sch. Employees' Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). · cites it 2× “] Accordingly, in light of the plain and ordinary language of what is now MCL 38.1303a; MSA 15.893(113a), the Legislature intends that mpsers members will earn service credit while receiving worker’s compensation benefits and that public school districts must pay contributions…”
Alberta Studier v. Michigan Pub. Schl Emp Ret. Bd (Mich. 2005). · cites it 7× “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
City of Adrian Sch. Dist. v. Pub. Sch. Employes'Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). · cites it 2× “§ 38.1303a; M.S.A. § 15.893(113a), the Legislature intends that MPSERS members will earn service credit while receiving worker's compensation benefits and that public school districts must pay contributions to MPSERS for members who receive worker's compensation benefits on or…”
— Mich. Comp. Laws § 38.1303a(1) — 5 cases
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Alberta Studier v. Michigan Pub. Schl Emp Ret. Bd (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
— Mich. Comp. Laws § 38.1303a(2) — 4 cases
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
— Mich. Comp. Laws § 38.1303a(2)(a) — 1 case
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
— Mich. Comp. Laws § 38.1303a(2)(d) — 3 cases
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
— Mich. Comp. Laws § 38.1303a(2)(f) — 3 cases
Adrian Sch. Dist. v. Michigan Pub. Sch. Employees' Ret. Sys., 582 N.W.2d 767 (Mich. 1998). “§ 38.1303a; M.S.A. § 15.893(113a). [7] A member totally and permanently disabled by a work-related injury may receive service credit for the time worker's compensation benefits are paid if the member recovers and returns to work.”
Sch. Dist. for the City of Adrian v. Michigan Pub. Sch. Employees' Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). “] Accordingly, in light of the plain and ordinary language of what is now MCL 38.1303a; MSA 15.893(113a), the Legislature intends that mpsers members will earn service credit while receiving worker’s compensation benefits and that public school districts must pay contributions…”
City of Adrian Sch. Dist. v. Pub. Sch. Employes'Ret. Sys., 556 N.W.2d 524 (Mich. Ct. App. 1996). “§ 38.1303a; M.S.A. § 15.893(113a), the Legislature intends that MPSERS members will earn service credit while receiving worker's compensation benefits and that public school districts must pay contributions to MPSERS for members who receive worker's compensation benefits on or…”
— Mich. Comp. Laws § 38.1303a(3) — 5 cases
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Alberta Studier v. Michigan Pub. Schl Emp Ret. Bd (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
— Mich. Comp. Laws § 38.1303a(3)(b) — 1 case
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
— Mich. Comp. Laws § 38.1303a(3)(c) — 2 cases
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
Alberta Studier v. Michigan Pub. Schl Emp Ret. Bd (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
— Mich. Comp. Laws § 38.1303a(3)(d) — 2 cases
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
Alberta Studier v. Michigan Pub. Schl Emp Ret. Bd (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
— Mich. Comp. Laws § 38.1303a(3)(f) — 3 cases
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
— Mich. Comp. Laws § 38.1303a(5) — 4 cases
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
— Mich. Comp. Laws § 38.1303a(5)(a) — 3 cases
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
— Mich. Comp. Laws § 38.1303a(6) — 4 cases
Dignan v. Michigan Pub. Sch. Employees Ret. Bd., 659 N.W.2d 629 (Mich. Ct. App. 2003). “1304(12) and MCL 38.1303a(2). The pac is determined by averaging the retiree’s compensation for the last thirty-six months of employment.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. Ct. App. 2021). “1303a(5) confines the retirement board’s decision-making authority to ascertaining whether a “form” of remuneration received by a member constitutes reportable compensation.”
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
— Mich. Comp. Laws § 38.1303a(f)(3) — 1 case
Patricia Batista v. Off. of Ret. Servs. (Mich. 2024). “This case pertains to MCL 38.1303a’s definition of “compensation.”
— Mich. Comp. Laws § 38.1303a(l) — 1 case
Studier v. Michigan Pub. Sch. Employees' Ret. Bd., 698 N.W.2d 350 (Mich. 2005). “Indeed, MCL 38.1303a makes clear that payment of health care benefits by the MPSERS is not an element of the consideration that the state contracts to tender as remuneration for a public school employee’s services.”
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