Matching contributions for Basic or MIP DC Converted employees and updates to the contribution rate table

July 16, 2018

Beginning September 1, 2018, Public Act 169 of 2018 provides for matching employer contributions for employees who converted to the DC plan in 2012. Eligible employees will receive a 100 percent match of defined contributions (DC) to their 401(k) Plan, up to 3 percent of their wages.  

To take full advantage of the employer DC match, employees will be automatically enrolled at a 3 percent contribution rate into the State of Michigan 457 Plan (unless they’re already contributing 3 percent or more). This is in addition to the 4 percent mandatory employer contributions that are already required.

This change will take effect on DTL4 records with a record begin date of September 1, 2018 or after. There is no opt-out option for employees. Employees can contact the third-party administrator, Voya Financial®, and make changes to the contribution rate at any time.

	Employee Contributions	Employer Contributions	Additional Information
Employees with Premium Subsidy healthcare	3% auto-enrolled DC (unless they already contribute 3% or more)	4% mandatory employer contributions into 401(k) Plan Up to 3% DC matching employer contributions	This employee group will begin to participate in the Small Steps Campaign.
Employees with Personal Healthcare Fund (PHF)	First 2% into the PHF plan, then 3% auto-enrolled DC (unless they already contribute 5% or more)	4% mandatory employer contributions into 401(k) Plan 2% into the PHF plan Up to 3% DC matching employer contributions	This employee group is already participating in the Small Steps Campaign.

MIP DC Converted and Basic DC Converted employees will be included on the DC Feedback file you receive on August 31, along with any employee who made a regular contribution change. Please begin to use the new contribution percent amount for the pay period listed in the Effective Report End Date column on the View DC Feedback screen.

The member and employer contribution rates due on members' wages paid between September 1, 2018 and September 30, 2018 have been updated to reflect the changes from PA 169 and are now available on the Contribution Rates page of the Employer Information website.

If you have any questions related to reporting, email Employer Reporting at ORS_Web_Reporting@michigan.gov.