Shortfall interest rate change effective January 1, 2019
Michigan Office of Retirement Services sent this bulletin at 07/02/2018 05:21 PM EDT
July 2, 2018
Shortfall interest rate change effective January 1, 2019
Effective January 1, 2019, the interest rate charged on late payments will be 12.40 percent.
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 14.40 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.
If you have any questions, please contact Employer Reporting at ORS_Web_Reporting@michigan.gov or 517‑636‑0166.