Reform Alert # 23 - Retirement Benefit Plan Effective Dates and Retirement Reporting Implementation Dates

MPSERS reform

November 7, 2012

 

Reform Alert # 23 - Retirement Benefit Plan Effective Dates and Retirement Reporting Implementation Dates

 

Effective dates for member retirement benefit elections are different from the implementation dates for retirement reporting changes.

Retirement Reporting Implementation Date

The new retirement reporting file layouts will be implemented with all reports submitted December 1, 2012, and after. These reports must be in the new file layout, even if the report begin and/or end dates fall before December 1.

Please remember:

  • If there are no Personal Healthcare (PHF) contributions, put zeros in those fields.
  • The old format will fail to load.
  • It does not matter what time period the report is for, if it is loaded in December it must be in the new format.

Retirement Benefit Plan Effective Dates

Reporting contribution changes for all member benefit plan elections are effective with your first retirement reporting pay period with a December, 2012 begin date. As ORS requires that you report wages when paid, not when earned, please remember to begin withholding the new contributions for the first pay period that will be reported with a begin date of December 1, 2012, or after.

For Example: Wages earned between 11/17/2012 and 11/30/2012 will be reported on a payroll report with the begin and end dates of 12/01/2012 through 12/14/2012. The wages earned from 11/17 through 11/30 should have the new contribution rates withheld to report to ORS on the 12/1/12 through 12/14/12 report.

New Reporting File Layouts

Four additional fields will be added to the detail 4 file layout for reporting Personal Healthcare Fund (PHF) member and employer contributions. New fields will separate the defined contribution savings portion from the PHF contributions.

The new Detail 4 layout includes field names, format, length, position, required field indicator, and explanation of each added field. See the Detail 4 – DC Contributions File Layout at www.michigan.gov/psru under 2012 Retirement Reform, Reporting Updates.

Temporary Restraining Order

The temporary restraining order (TRO) applied to the closing of the election window. It did not impact either the new hire rules or the implementation of reporting changes as outlined by P.A. 300 of 2012. At this time ORS doesn’t know if the December 1, 2012, implementation date will be the valid implementation date for pension and health elections. Efforts in the courts continue and the legislature returns November 8th. Changes for reporting new hires who first worked September 4, 2012, or after will be in effect beginning with your first pay period begin date on or after December 1, 2012, as reported to ORS.

 

We need to keep preparing for a December 1, 2012 implementation date even though full implementation of PA 300 does require an official end to the election window.