Reporting retirees who return to work

Michigan Office of Retirement Services sent this bulletin at 06/08/2015 09:03 AM EDT

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Reporting retirees who return to work

Use the following guidelines when reporting retirees who return to work. Refer to the Reporting Instruction Manual (RIM) for more detail.

First, determine whether your reporting unit hired the retiree directly or through a third party/as an independent contractor.

Retirees hired directly (earnings limits may apply)

Check the Member Benefit Plan screen on the Employer Reporting website to determine the person’s retirement and healthcare benefit plans. If a healthcare plan is not shown, the plan is Premium Subsidy.

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Report retirees who retired with a MIP/Basic retirement plan and the Premium Subsidy healthcare plan using the retiree employment class codes below. Employer and/or employee contributions are not required. (RIM 7.20.01)

9003 – Retiree - Teacher
9004 – Retiree - Administrator
9005 – Retiree - Other

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Retirees who retired with any Defined Contribution (DC) component to their retirement plan, including Pension Plus and those who converted to DC and/or the Personal Healthcare Fund (PHF) plan, are qualified participants (RIM 7.20.02). Report them using the employment class codes below. The employer contribution rate of 20.96% (UAAL) is required on wages reported on the DTL2. Report employee and/or employer contributions on a DTL4 record based on the DC and/or PHF component of the employee’s retirement plan.

9033 – Direct Hire Retiree (Teacher)
9034 – Direct Hire Retiree (Administrator)
9035 – Direct Hire Retiree (Other)

Retirees hired through a third party or as independent contractors (earnings limits do not apply)

Check the Member Benefit Plan screen on the Employer Reporting website to determine the person's retirement effective date.

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Retirees who retired before 7/1/10 are not reported to ORS.

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For retirees with a retirement effective date on or after 7/1/2010, check the ORS Core Services list (RIM 9.06). This includes (but is not limited to) any management or teaching position.

Report retirees performing core services using the employment class codes below. The retiree’s pension and insurance premium subsidy will be suspended until core-service employment ends. Employee and employer contributions are not required.

9043 – 3rd Party Core Services (Teacher)
9044 – 3rd Party Core Services (Administrator)
9045 – 3rd Party Core Services (Other)

Retirees who do not perform core services are not reported to ORS.

If you have questions about reporting retirees or are unsure about which employment class codes to use, contact Employer Reporting at 517-636-0166 or ORS_Web_Reporting@michigan.gov.

State of Michigan | Department of Technology, Management & Budget | Office of Retirement Services
P.O. Box 30171 | Lansing, MI 48909-7671 | www.michigan.gov/psru

Please do not reply to this email. This mailbox is not monitored and you will not receive a response. For assistance, contact ORS_Web_Reporting@michigan.gov.

The retirement plan information that appears in this email is intended to summarize basic provisions of Public Act 300 of 1980, as amended. Current laws, rates, and factors are subject to change. Should there be discrepancies between the information reflected here and the actual law, the provisions of the law govern.