REVISED shortfall interest rate change effective January 1, 2018

Michigan Office of Retirement Services sent this bulletin at 12/27/2017 08:17 AM EST

Michigan Office of Retirement Services - Message for Public School Employers

December 27, 2017

REVISED shortfall interest rate change effective January 1, 2018

Effective January 1, 2018, the interest rate charged on late payments will be 8.48 percent. Please disregard the email sent on December 6, 2017 that provided a different rate.

The rate of interest charged on the late payment is the actuarial rate of return on the prior year’s investments less 2 percent, but cannot be less than 6 percent. This rate fluctuates annually at the beginning of the calendar year. The most recent published actuarial rate of return was 10.48 percent.

For the legal requirements regarding late fees and interest, see the retirement statute, Public Act 300 of 1980, specifically MCL 38.1342(7).

For more information see the Reporting Instruction Manual section 8.02.02: Late Payment Fees.

We apologize for any inconvenience caused by the inaccurate rate provided in our previous email. If you have any questions, please contact Employer Reporting at ORS_Web_Reporting@michigan.gov or 517-636-0166.

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.