Reform Alert 29 - Reporting changes effective December 1

MPSERS reform

 

November 30, 2012

 

Reform Alert 29 - Reporting changes effective December 1

 

Detail 4 (DTL4) File Format

Starting December 1, 2012, all reporting units will be required to submit their retirement reports using the new DTL4 file format. The old format required contributions for both Defined Contribution (DC) and Personal Healthcare Fund (PHF) to be entered as one total in the Member DC and Employer DC dollar and percent fields. The new format requires the contribution amounts to be reported into a total of four separate fields. If the member does not have the Personal Healthcare Fund you must enter 0.00 in all PHF related fields.

 

The new Detail 4 – DC Contributions File Layout can be found at www.michigan.gov/psru under 2012 Retirement Reform – Reporting Updates.

 

Uploading a Report

The new file format applies to any report submitted on or after December 1, 2012, regardless of the report or record begin and end dates. Any DTL4 records that are submitted using the Upload method and have the old file format after December 1 will not load and will not appear on your report. While DTL1, DTL2 and DTL3 records will load, DTL4 records in the old format will not. The DTL4 records will have to be manually entered or you may delete and upload the entire report again using the new DTL4 file format. Remember, you cannot delete a report once any record has posted.

 

Using Copy Forward

If you use the copy forward method of populating your reports, you will need to open and review the DTL4 records the first time to ensure that data is populating in the correct fields. Reports are copied forward using the data on the most recently posted report. You must post a report with records in the new format in order to copy forward DTL4 records in later reports. Failure to use the new format on your first report submitted and posted after December 1, 2012, will result in the inability to copy forward DTL4 records on your next submitted report. They will have to be manually entered in the correct format for that report. Once a report has posted with the new format, those records will be allowed to copy forward.

 

Using a Blank Report

If you use the blank report (data entry) method of populating your report, you will have to manually enter the DTL4 records in the new format. Enter 0.00 in any field not requiring data.

 

New Employee Deferrals

New employees, who first worked on or after September 4, 2012, will receive their Personal Identification Number (PIN) directly from ING early in December. Once they receive their PIN, they will be able to change their deferral amounts on the ING website at https://stateofmi.ingplans.com/eportal/welcome.do. If your employees have any problem logging in to the ING site, refer them to the ING call center at (800) 748-6128.

 

ING Feedback File

ORS relays the deferral amounts and any changes to you using the View ING Feedback File link on the Things To Do menu on the Employer Reporting Website. The file will include detailed information on the member and the deferral amounts. The file will show the required contribution amount for new employees as soon as ING has their details as well as any changes made to current contribution rates by new and existing MPSERS members in a DC benefit plan and/or with the Personal Healthcare Fund.

 

For all members with a Personal Health Care Fund (PHF) the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. The percentage and dollar amounts must be reported on a DTL4 record in the Member and Employer PHF Contributions $ and % fields. Any member contributions over 2% are reported in the Member and Employer DC fields on the DTL4 record and matched at 50% up to 1% for Pension Plus plan members and up to 3% for DC members. See the following charts on Pension Plus and PHF or DC Plan and PHF Contribution Hierarchy. Make the changes to withholding on your next available pay period report. You should check this link once every pay cycle for the latest information.

 

Pension Plus Plan and PHF Contribution Hierarchy

Employee Contribution*

Employer Contribution

Total Contribution

Personal Healthcare Fund

Defined
Contribution

Total Contribution

Personal Healthcare Fund

Defined Contribution

4%

2%

2%

3%

2%

1%

3%

2%

1%

2.5%

2%

0.5%

2%

2%

0%

2%

2%

0%

1%

1%

0%

1%

1%

0%

 

*The first 2% of any employee contribution must be matched 100% by the employer.

 

DC Plan and PHF Contribution Hierarchy

Employee Contribution*

Employer Contribution

Total Contribution

Personal Healthcare Fund

Defined
Contribution

Total Contribution

Personal Healthcare Fund

Defined Contribution

8%

2%

6%

5%

2%

3%

5%

2%

3%

3.5%

2%

1.5%

2%

2%

0%

2%

2%

0%

1%

1%

0%

1%

1%

0%

 

*The first 2% of any employee contribution must be matched 100% by the employer.

 

New Employee Elections

If the new employee selected the Pension Plus with PHF no adjustment records are required. Once ORS has processed the election form, any suspended DTL2 records will post with the correct employee and employer contributions. The previously posted DTL4 records should have had the correct data for that benefit plan already.

 

If the new employee selected the Defined Contribution with PHF plan, any suspended DTL2 records will post with the correct employer contribution after ORS processes the election form. You will need to make positive adjustments to the previously posted DTL4 records as the percentage withholding for Pension Plus is different than the withholding for the Defined Contribution plan and the election is retroactive to the first pay check. Therefore, positive adjustments must be made to ALL prior pay periods to make the contributions whole towards their savings plan. You will need to submit a DTL4 adjustment record for each previously posted DTL4 record, for the difference in employee and employer contribution amounts. Adjustment totals should be compared to the original detail submitted for each pay period, and must equal 8% of gross earnings for the employee defined contribution savings portion (6% DC contribution and 2% PHF) with a 5% employer match (3% DC contribution and 2% PHF).

 

Detailed instructions will be available in the Reporting Instruction Manual early next week.

 

Member Benefit Plans

When determining what contribution rate to withhold for a new employee, please refer to the Reporting Changes – Benefit Plans chart on at www.michigan.gov/psru under 2012 Retirement Reform – Reporting Updates. Additionally, the Download Detail link on your View Report Totals page will reflect accurate calculations of all new hire contribution rates. ORS will notify you when the View Member Benefit Plans link is displaying the correct contribution rates.

 

Pension Plan and Retiree Healthcare Elections Still Under TRO

The temporary restraining order (TRO) on the closing of the election window is still in effect regarding the implementation date for pension and retiree healthcare elections for members who first worked prior to September 4, 2012.

 

If you have any questions, please contact ORS_Web_Reporting@michigan.gov.