Reform Alert # 46 - ORS Notifying 1,000 Members Regarding Open Member Billing Statements

January 25, 2013

 

Reform Alert # 46 - ORS Notifying 1,000 Members Regarding Open Member Billing Statements

 

We are advising you of this notification in case any of these members are employed by your reporting unit and come to you with questions.

 

Email messages and letters have been sent to 1,000 members that elected Options 2 or Option 3, and have an open Member Billing Statement to purchase service credit. The purpose is to advise them that the cost for these types of service credit purchases are based on actuarial rates. Those rates are currently undergoing a review and the actuarial rates shown on the ORS web site remain in effect.

• If employees elected Option 2: Their pension formula for Universal Buy-In, Nonpublic Educational, Parental Leave, or State of Michigan Civil Service – Defined Contribution Plan service purchased before they reach 30 years of service or before the expiration date shown on the Member Billing Statement, whichever comes first, will be calculated at a 1.5 percent multiplier. Their pension formula for the same service credit purchased after they reach 30 years of service but before the expiration date shown on their Member Billing Statements will be calculated at a 1.25 percent multiplier. The cost of the purchase remains the same.

   

• If employees elected Option 3: Their pension formula for Universal Buy-In, Nonpublic Educational, Parental Leave, or State of Michigan Civil Service – Defined Contribution Plan service purchased on or before January 31, 2013, will be calculated at a 1.5 percent multiplier. Their pension formula for the same service credit purchased on or after February 1, 2013, will be calculated at a 1.25 percent multiplier. The cost of the purchase remains the same.

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