Updated October 7, 2026. Quick answer: The Detroit General Retirement System pays a straight life pension unless a member elects a survivor option, and the system’s own pages say the election cannot be changed after the first pension check is cashed. Survivor shares run from 25 percent to 100 percent of a reduced pension, with an optional pop-up if the beneficiary dies first. A member who leaves may take a refund of mandatory contributions, without interest, instead of any Hybrid pension. The Hybrid pension is 1.5% of average final compensation for each year of service after June 30, 2014, vested at 10 years.
Michigan municipal employees belong to a separate system with its own rules: Michigan MERS retirement decisions.
Detroit police and fire members belong to a separate city system with its own rules: Detroit police and fire retirement decisions.
What this page covers and what it does not
This page covers the General Retirement System of the City of Detroit (GRS), whose member pages are run by Retirement Systems of Detroit. It does not cover the separate police and fire system. The GRS pages read are a Frequently Asked Questions page and a Prepare for Retirement page on the system’s website, plus the two annual actuarial valuations published on the same site, one for each plan component. All were read on October 7, 2026.
The system also posts its Combined Plan document, but that file is a scanned image with no searchable text, so nothing here is quoted from it. The valuations warn that “The material below does not have legal standing and is not intended to cover all potential situations that could occur”, and “If there are discrepancies between the description below and appropriate legal documents, the latter necessarily govern”.
State tax is on Michigan retirement taxes and does Michigan tax pensions.
Two plans: which rules apply to a member
The system’s FAQ says “Your Retirement Plan is a Hybrid and has two components, a pension component and an annuity component”. It adds that “If you hired before July 1, 2014 you may have two retirement plans”. The Hybrid plan applies to people hired on or after July 1, 2014, according to the FAQ. The Legacy plan is Component II and the Hybrid plan is Component I.
The FAQ states “Your mandatory contribution is currently 4% of your base compensation”, adds that “The 4% is deducted on a pre-tax basis”, and warns that “This rate can change depending on the funding of the plan”. The voluntary annuity account is described below.
The Legacy plan is frozen. The Legacy valuation says “All Component II benefits are frozen as of June 30, 2014”. It adds that frozen benefits were further reduced by 4.5% and that all future cost-of-living adjustments were eliminated. A Legacy member should read the system’s own benefit estimate rather than an older plan summary.
When a pension can start
For the Hybrid plan, the FAQ says: “Members may retire at age 62 with at least 10 years of service or refer to the transition chart, if applicable”. The Hybrid valuation says the normal retirement allowance “is 1.5% times Average Final Compensation times Credited Service (after June 30, 2014) measured to the nearest month”. Vesting takes 10 years: “A pension benefit is vested when a member has at least ten 10 years of credited service”.
A computed example from an assumed $60,000 average final compensation and an assumed 10 years of Hybrid service, not GRS figures: 1.5% times 10 times $60,000 is a computed $9,000 a year, or $750 a month before any option reduction. Only service after June 30, 2014 counts in that formula.
For the Hybrid reduced early pension the FAQ says: “You must have at least 30 years of credited service and have attained age 55, and have not attained your Normal Retirement Date, to receive a reduced early pension benefit”. The valuation explains the reduction: “The early retirement amount is the Actuarial Equivalent of the deferred retirement allowance that would be payable to the member on the Normal Retirement Date”. The size of that reduction for a given age is not printed in the pages read.
For the Legacy plan, the FAQ says “You may elect a service retirement if you have at least 30 years of credited service”; “if you are age 60 or older and have at least 10 years of credited service”; and “if you are age 65 or older and have at least 8 years of credited service”. A reduced Legacy early pension has a short deadline: “You have 90 days after your separation from the City to elect the reduced early pension benefit”.
The steps to apply and what to bring
The Prepare for Retirement page lists three steps. First, a member requests a service check and benefit estimate, which gives “estimates of how much you may expect to receive as a pension allowance per each option available to you”. Next, “Contact your Human Resources Representative with the City and notify them of your intent to retire”. Then a retirement interview is scheduled, where “a Member Services Representative will assist you in completing the appropriate retirement application”.
For that interview the page lists items such as “Proof of birth for your beneficiary” and “Your marriage license (if applicable)”. The FAQ puts the option choice at the end of the process, at the exit interview.
The survivor options, the pop-up and what is irrevocable
The Hybrid valuation says “The normal form of payment is a straight life allowance with no death benefit, and, in particular, no residual refund of mandatory employee contributions”. A member may elect a different form: “Until the date the first Retirement Allowance payment check is issued, any Member may elect to receive payment either in the Normal Form or in the Actuarial Equivalent of the Normal Form”. The FAQ words the cutoff differently: “You cannot change your election or your option beneficiary after you’ve cashed your first pension check”. The two differ (first check issued, versus first check cashed), so the safe reading is to decide before the first payment is issued.
The valuation lists the choices. “Option One. Modified Cash Refund Annuity” pays a lump sum to a beneficiary if the retiree dies before payments equal the contributions. The joint and survivor choices are “Option Two. Joint and One Hundred Percent Survivor Allowance”, “Option “A.” Joint and Seventy-Five Percent Survivor Allowance”, “Option Three. Joint and Fifty Percent Survivor Allowance” and “Option “B.” Joint and Twenty-Five Percent Survivor Allowance”. For the largest, the valuation says “one hundred percent of the reduced Retirement Allowance shall be paid to and continued throughout the life of the Beneficiary”.
The FAQ explains the pop-up: “The “Pop-Up” Option is a retirement option that you may elect which allows for your retirement to be changed in the event your beneficiary predeceases you”. It adds that “The additional cost associated with this option is borne by the retiree and his/her beneficiary”, and that “The cost is an actuarial value that is determined by the age of the retiree and their designated beneficiary at the time of application”. The valuation’s standard form is this: “Under the Standard Form, the reduced Retirement Allowance shall be paid throughout the lifetime of the Retiree”, so without the pop-up the reduced amount stays in place if the beneficiary dies first.
| Option | What the retiree is paid | What a survivor is paid |
|---|---|---|
| Straight life, no election | $1,000 a month in the FAQ example | No monthly benefit continues to a survivor |
| Joint and 100% survivor with pop-up | $820.40 | Beneficiary receives 100% of the reduced amount for life |
| Joint and 75% survivor with pop-up | $858.97 | Beneficiary receives 75% of the reduced amount for life |
| Joint and 50% survivor with pop-up | $901.34 | Beneficiary receives 50% of the reduced amount for life |
| Joint and 25% survivor with pop-up | $948.11 | Beneficiary receives 25% of the reduced amount for life |
Each figure is for a retiree and beneficiary who are both 60. Each illustration ends the same way: “if your beneficiary predeceases you, your benefit would automatically change to the straight life amount”. The cost is set by the two ages at application, so other age pairs give other figures that the pages read do not print.
A computed example from the printed ratios, not a separate GRS figure: the 100% option’s $820.40 against $1,000 is a computed 17.96% cut. The survivor shares follow from the reduced amount: 75% of $858.97 is a computed $644.23, 50% of $901.34 is a computed $450.67, and 25% of $948.11 is a computed $237.03 a month. Applied to an assumed $2,500 straight life pension at the same ages of 60 and 60, not a GRS figure, the 50% option would pay 2,500 times 901.34 divided by 1,000, a computed $2,253.35 a month, leaving a survivor a computed $1,126.68 a month.
The general trade-off is on single-life versus joint-and-survivor pension and survivor benefit with a government pension. The FAQ says: “You may designate any person as your beneficiary”. The pages read do not say whether a spouse must consent when someone else is named.
Retiring before 65: the Social Security option
The FAQ says “If you retire before age 65, you may elect the Social Security Coordination Option”: “you would be paid an increased allowance until you become eligible to receive Social Security Benefits at either age 62 or 65, and a reduced retirement thereafter”. The valuation says the election must come early: “until the first payment of a Retirement Allowance becomes due, but not thereafter, a Member under age sixty-five may elect”.
The FAQ’s illustration is a 60 year old with a $1,000 monthly allowance and a $680 Social Security estimate at 62. It says that “your retirement allowance until age 62 could be increased to $1,550”, and that “At age 62, your estimated retirement allowance would be decreased to $870”. A computed check on those printed figures: $870 plus $680 is a computed $1,550, the same level income the FAQ describes, and the extra before 62 is $1,550 minus $1,000, a computed $550 a month.
If a member dies before retirement
The FAQ draws a line at pension eligibility. It says “If you die before you are eligible to begin drawing your Vested Retirement Allowance, your spouse is not eligible for any allowance/benefits”. It adds: “They would, however, receive any balance in your Annuity Savings Fund plus interest earned in a lump sum upon request”.
For a member with enough service the FAQ quotes plan text that pays the spouse: “after the date such Member has earned ten or more years of Credited Service, the Member’s surviving Spouse shall receive a Retirement Allowance”, and the allowance is computed as if the member had chosen the Joint and 100 Percent Survivor Allowance. The FAQ says of contributions that “Accumulated Mandatory Employee Contributions to the Retirement System at the time of death shall be paid to the Beneficiary nominated in a written designation”. The Hybrid valuation words this differently: “if no Surviving Spouse benefit is payable, the accumulated mandatory Employee Contributions (without interest) are paid to the member’s estate”. The two disagree on who receives it, so name a beneficiary in writing and ask the system which rule applies.
The voluntary annuity: lump sum, installments or monthly annuity
The FAQ describes the annuity as optional: “The annuity component is voluntary, where employees can elect to participate”. On levels it says “You may contribute between 3%, 5% or 7% of your pay”. Earnings are bounded: the credited rate “shall be no less than zero and no greater than the lesser of (i) 5.25%”.
On payout, the Hybrid valuation says “accounts may be distributed in a lump sum, in equal monthly installments for a period not exceeding three years, or, at the option of the member, in the form of an actuarially equivalent life annuity”. The FAQ limits access: “You may only withdraw from your Component I (Hybrid) Annuity Plan if you are separated from service (retirement/resignation/termination/layoff) with the City”. It also says “Hardship withdrawals from the annuity plan are not permitted”. At retirement, the FAQ says, “you may elect to “annuitize” your entire or a portion of your annuity balance”, with the resulting monthly annuity included in the pension check.
For the Legacy account the FAQ lists a one-time withdrawal for an active employee: “You are an active employee with at least 25 years of service”. The FAQ cautions that “If you elect a full or partial lump sum refund, you will be subject to tax on interest earnings and you may be subject to pay additional taxes depending upon certain circumstances”. See 20 percent withholding on a pension lump sum and pension lump sum versus monthly annuity break-even.
Refund of contributions versus leaving them in
The Hybrid valuation says “A member who ceases to be an employee for reasons other than death, or disability, may elect to receive a refund of mandatory Accumulated Contributions (without interest) in lieu of any other Component I benefit payable”. The FAQ words it as a retirement election: “Upon retirement, GRS employees may elect to receive a refund of their contributions in lieu of receiving a Hybrid Pension”. The FAQ also asks whether a Hybrid pension can be taken as a lump sum while working, and answers no.
A computed example from assumed figures, not GRS figures: a member paid $50,000 a year for 10 years, with the 4% mandatory deduction the FAQ states and no change in rate, would have contributed 50,000 times 4% times 10, a computed $20,000, refunded without interest. If a refund of $20,000 were paid directly to the member, 20% withholding would be a computed $4,000, leaving a computed $16,000 in cash, and a rollover of the full $20,000 would need the withheld $4,000 from other money. The pension given up for that cash is what pension refund versus leaving it weighs; the system can state the amount for a vested member.
Military service credit
Military leave is the only service credit the pages read describe. The FAQ says “you will be given service time credit as if your service was uninterrupted”, but that “Mandatory contributions will have to be paid for the time missed upon the return of the employee”. For pre-employment Legacy credit it adds: “If you were granted pre-employment military service credit in the Legacy Plan it cannot be used to qualify for earlier retirement”. No purchase of other service is described, so the general pension buyback calculator does not map onto a documented GRS purchase.
The Hybrid cost-of-living increase
The valuation says “the Board may determine that a retiree’s Component I Retirement Allowance shall be increased by 2% of the original retirement allowance”, and “The VPIF escalator is not compounded”. The valuation limits it to retirees at “Attainment of at least Age 62, and in receipt of a retirement allowance for at least 12 months”. It cannot be awarded if the funding level projected over five years “falls below 100%”. For Legacy benefits the valuation says all future cost-of-living adjustments were eliminated.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of GRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The FAQ says that on a full or partial lump sum refund from the annuity account the member is taxed on interest earnings, and these IRS rules sit on top for any pension refund or lump sum. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
What this page could not settle
- The Combined Plan document is posted only as a scanned image with no searchable text, so its wording on options, refunds and deadlines could not be read. Everything here comes from the FAQ, the Prepare for Retirement page and the two valuations.
- The pages read print option reduction figures only for the age 60 and age 60 illustration, so the cut for any other age pair is not stated.
- The pages read do not say whether a spouse must consent when a married member chooses less than a full survivor benefit.
- The pages read give no deadline for a Hybrid refund and do not describe the Legacy plan’s refund terms.
- The FAQ and the Hybrid valuation word the cutoff for changing an election differently, and disagree on who receives a deceased member’s contributions.
- The pages read describe no way to buy service credit other than military leave, and no cash lump sum from the pension itself.
Common mistakes
- Waiting until after the first pension check to think about a survivor option; the FAQ says the election cannot be changed after that check is cashed.
- Assuming the pop-up cost is a fixed percentage; the FAQ says it depends on both ages at application.
- Taking a refund of mandatory contributions without asking what pension is given up; the valuation says it is paid in lieu of any other Component I benefit and without interest.
Related on this site: pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20 percent withholding on a pension lump sum, pension lump sum versus monthly annuity break-even, survivor benefit with a government pension, Michigan retirement taxes, does Michigan tax pensions, Michigan MPSERS retirement decisions and public pension retirement decisions by system.
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Answer againSources
- Retirement Systems of Detroit, General Retirement System Frequently Asked Questions (member resources web page, read October 2026): https://www.rscd.org/member_resources_/grsd_general_faq.php
- General Retirement System of the City of Detroit, Annual Actuarial Valuation of Component I (Hybrid) as of June 30, 2025 (January 12, 2026): https://www.rscd.org/2025-06-30%20General%20Comp%20I%20-%20Actuarial%20Valuation%20(2026-01-12).pdf?t=202602131205470
- General Retirement System of the City of Detroit, Annual Actuarial Valuation of Component II (Legacy) as of June 30, 2025 (February 18, 2026): https://www.rscd.org/2025-06-30%20General%20Comp%20II%20-%20Actuarial%20Valuation%20(FINAL%202026-02-18).pdf?t=202602240935560
- Retirement Systems of Detroit, GRS Prepare for Retirement (member resources web page, read October 2026): https://www.rscd.org/member_resources_/prepare_for_retirement.php
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 7, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.