Increase in School Aid Fund payment is reimbursement for retirement costs

Michigan Office of Retirement Services sent this bulletin at 08/14/2018 11:28 AM EDT

Increase in School Aid Fund payment is reimbursement for retirement costs

Included with your August State School Aid Fund payment is the final reimbursement for the 2017-18 school fiscal year increased retirement costs due to the passage of Public Act 92 of 2017. The state’s reimbursement consists of the 4-percent employer contribution (effective October 1, 2017) for participants in the Defined Contribution (DC) plan, and the difference between Pension Plus and Pension Plus 2 employer normal cost contributions (3.13 percent for the fiscal year ending September 30, 2018).

In July, ORS reconciled the contributions you reported to our office from October 1, 2017 through June 30, 2018. Your August payment will reimburse your reporting unit for the remaining increased contributions yet to be reimbursed. This amount will not appear on your employer statement because it is a reimbursement for contributions you have reported through the fiscal year.

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.