Action Required - Timeline for upcoming reform changes

September 29, 2017

Timeline for upcoming reform changes

Service Credit purchases using a Tax-Deferred Payment (TDP) Agreement

After 5:00 p.m. EDT on Friday, September 29, TDP agreements will no longer be honored for most types of service credit purchases. To be honored, the TDP agreement must be 100% complete, signed by both the employee and the employer, and received by fax at ORS. The fax time stamp must indicate it was receive prior to 5:00 PM EDT on Friday, September 29, 2017.

What if the fax doesn’t make it in time? If you find you’re in a situation that the TDP was received by ORS after the deadline, you must notify the employee that it wasn’t accepted. Unless it’s one of the service credit types still available to purchase, they are no longer able to buy years of service credit.

Action required - 4% Mandatory employer contribution goes into effect

On Monday, October 2 when you open up your View DC Feedback file, you will find every one of your employees, both terminated and active, who elected the Defined Contribution (DC) plan, and were first hired on or after September 4, 2012.

Update your payroll system to reflect the mandatory 4 percent employer contributions based on the report effective date on the feedback file.

Report accurate employer contributions

The updated FY 2017-18 Employer Contribution Rates due on members' wages paid between October 1, 2017, and January 31, 2018 go into effect on October 1.

To report accurate employer contributions, ensure you follow the process outlined below:

• DTL2 records with a record end dateon or after 10/01/2017, use the updated DB contribution rates.
• DTL4 records with a record begin dateon or after 10/01/2017, use the updated DC contribution rates, as described above.

For reform related questions please visit the 2017 Reform page on the Employer Information website or contact ORS_Web_Reporting@michigan.gov or 517-636-0166.