Quarterly increase in State Aid payment is reimbursement for new retirement costs

Michigan Office of Retirement Services sent this bulletin at 04/16/2018 08:37 AM EDT

Michigan Office of Retirement Services - Message for Public School Employers

Quarterly increase in State Aid payment is reimbursement for new retirement costs

In April, your State Aid payment will include a reimbursement for increased retirement costs due to the passage of Public Act 92 of 2017. The state’s reimbursement consists of the 4-percent mandatory employer contribution (effective October 1, 2017) for participants in the Defined Contribution (DC) plan, and the difference between Pension Plus and Pension Plus 2 (effective February 1, 2018) employer normal cost contributions (3.13 percent for the fiscal year ending September 30, 2018). This new amount will not appear on your employer statement, and ORS will not invoice you for it, because it is a reimbursement for contributions you made in the previous quarter.

For fiscal year 2018, your April quarterly reimbursement is based on estimated costs. Your reporting unit will also receive a reimbursement with your May State Aid payment based on actual contributions reported to our office from October 1, 2017 through March 31, 2018. Final reimbursements for fiscal year 2018 will be applied to your August State Aid payments.

If you have questions, contact Employer Reporting at 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.