Last year we introduced an election toolkit and proposed that reporting units email links to the Retirement Plan Election Guide (R0606C) and the Retirement Plan Decision Guide (R0607C) to their employees who are new to MPSERS. The goal of these materials is to educate new employees on the Pension Plus 2 and Defined Contribution retirement plans and encourage them to make an informed election earlier.
Although the legislature gives new employees 75 days to make their election, it’s easier for all involved when members make their election sooner rather than later. Members who receive this information earlier can add it to other “new job” tasks. The sooner a member makes their election, the fewer adjustments you’ll have to make.
Because the new materials are electronic documents, you may choose to email all new hires this information. Links can be found on www.pickmiplan.org under Get To Know The Plans.
Interest has been posted to Michigan Public School Employees Retirement System (MPSERS) member accounts effective as of July 1, 2020.
The interest rates are as follows:
- Basic and Member Investment Plan (MIP) members: 5.62%
- Pension Plus members: 7.05%
- Pension Plus 2 members: 5.91%
ORS invests defined benefit contributions from both members and employers to fund future retirement benefits. Each year ORS credits each member's account with an interest payment on their contributions that have been held on account for one full year.
You may refer employees to the full list of the Defined Benefit plan interest rates dating back to July 1, 1988, available on the ORS member website (mi.gov/orschools): Defined Benefit Plan Interest Rates.
In late July an urgent Tax-Deferred Payment (TDP) notice will be sent out to 615 members who have previously entered into a Tax-Deferred Payment Agreement and:
- Have interest charges that exceeded their annual payment amount; or
- The scheduled deduction amount is not enough to pay off their agreement within the recommended 15 years.
The letter includes their current TDP information and encourages members to increase their current TDP deduction amount by completing and submitting the Supplemental Tax-Deferred Payment Agreement (R0654C) form to you. The form is available on the ORS member website (mi.gov/orsschools) under Forms and Publications. Members can also use the TDP calculators on the member website to calculate a payment that fits their budget and also pays off the agreement before they terminate employment or retire.
For more information, see RIM section 10.08.02: How to Process the Supplemental TDP Agreement.
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ORS Employer Reporting performs several audits over the course of the year. Currently, the payroll audit and the annual wage review are underway.
The payroll audit ensures that reporting units are submitting complete wage, service, contribution, and census data on defined members of the retirement system.
The annual wage review is a review of wage increases for members reported using the 1110, 1120, 1130 class codes for compliance with the Normal Salary Increase (NSI).
We will contact your reporting unit if we need any information regarding these audits or any other audits. As a reminder, if you have been asked to process adjustments, please complete them as soon as possible. If you need help processing these adjustments, please contact the Web Reporting Team at ors_web_reporting@michigan.gov or 800-381-5111.
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