MPSERS Employer News - October 2020

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MPSERS Employer News

October 2020

New Employees

DTL1 records and reporting new hires

When reporting an employee new to your reporting unit or new to MPSERS, a DTL1 record must be submitted to ensure correct demographic information is on file. A DTL1, DTL2, and DTL4 record are required for brand new MPSERS members. Please wait to submit a DTL1 record for a new employee until you are also ready to report their wages and hours. Otherwise their election window will start too early. 

When completing the DTL1 record, verify that the zip code is not entered in the postal code field (for U.S. addresses), as the postal code field is for a foreign address only. The date of birth, country code, and gender fields must also be completed, or the DTL1 record will suspend.

The start date field is for the first day the employee begins working, so please be sure not to enter the date of birth in that field. If either date field is incorrect, a corrected DTL1 will need to be submitted, as both dates must be accurate for an accurate pension to be calculated. 

Lastly, as a reminder, you also need to submit a DTL1 record when an employee has a name or address change.

Please see sections 7.11.01: Detail One (DTL1) Demographics  and 7.11.02: Changing or Adding Demographic Data for an Existing Member  for additional information on the DTL1 record.


Reporting Authorization Certifications sent

AUthorized personnel only

Each year, the Reporting Authorization Certification (RAC) is sent to all reporting units near the beginning of the school year. This form includes the contacts and users for your reporting unit as they are listed on your Employer Reporting website home page, in the box called Your Contacts. It is critical to review this information to make sure the list is correct and up to date, and to make sure the staff at your school have the proper user access to load and process payroll reports and process payments.

Having current contact information is also important to ensure that ORS is contacting the correct staff when communicating with reporting units about changes in retirement law, reporting and payment issues, programming updates, and so on.

Superintendents or chief administrators (ADM1) should have received this form in early October. It should have been returned to ORS Employer Reporting by email, at ORS-Contract-Review@michigan.gov, no later than October 20, 2020. If you have already returned your RAC form, there is no need to send another one.

If any changes are needed now or anytime throughout the year, the Web Administrator must make the changes on the Employer Reporting website. To make changes to the Web Administrator or Payment Processor access, complete the necessary Web Administrator Authorization (R0687C) form and/or the Payment Processor Authorization (R0842C) form, depending on which roles need to be updated. Refer to the Reporting Instruction Manual, Chapter 12: Managing Web User Accounts for more information.


longevity payments

RIM – Change to description of longevity

Section 4.04.23 Longevity Payments was recently added to the Reporting Instruction Manual (RIM) to provide further clarification on longevity payments and whether they are reportable. As part of this update, Section 4.06.18 Super Longevity Payments, has been removed from the RIM.

The new section describes and provides examples of reportable and nonreportable longevity compensation. An example of reportable compensation would be annual longevity payment given based on length of service. In many cases, super longevity (if your reporting unit uses this term) meets this criteria. Examples of nonreportable compensation would be a one-time payment upon termination of employment based on length of service, and remuneration paid for the specific purpose of increasing the final average compensation.

If your reporting unit makes longevity and/or super longevity payments, please review the new section. If you have questions, please contact ORS_Web_Reporting@michigan.gov for assistance.


Virtual learning

Retirees returning to work for virtual learning organizations

With virtual learning happening in many school districts, some MPSERS retirees may be working for virtual learning organizations. When a MPSERS retiree is hired by a virtual learning organization to perform services for a reporting unit virtually, that retiree is subject to the provisions of Public Act 300 of 1980, as amended. Virtual learning organizations are considered third-party/indirect employers. 

MPSERS retirees hired by these virtual learning organizations may be eligible for the critical shortage provisions of Public Act 300, as they are employed at a reporting unit by an entity other than the reporting unit. Retirees need to meet the requirements listed in statute to be eligible.

MPSERS retirees hired by these virtual learning organizations, who are performing core services and don’t meet the eligibility criteria for critical shortage under Public Act 300, would fall under the core service provisions of Public Act 300, because they are performing core services at a reporting unit but are employed by an entity other than the reporting unit (the virtual learning organization).

 It is the responsibility of your reporting unit to report these retirees to ORS. The online guide Working After Retirement – Employer Guide is available to assist you in determining how to report a MPSERS retiree.


COVID-19 reporting updates

Covid-19 update

Please note that several state of Michigan executive orders regarding COVID-19 expired on Sept. 30, 2020. Specifically, two provisions have expired, as explained in last month’s newsletter on this topic (Compensation Corner: COVID-19 Updates): the provision for reporting full hours and wages for employees who are only working part time due to COVID-19; and the provision to report “hazard pay” that is above and beyond the normal wage or salary and does not involve additional duties or responsibilities.  Unless the legislature extends this date, these additional wages are no longer reportable on a Detail 2 record. 

Compensation for additional duties or responsibilities, whether COVID-related or not, must be clearly documented in advance. A memo, board meeting minutes, contract or bargaining agreement may serve as documentation. Please contact  ORS-Contract-Review@michigan.gov if you have any questions about the reportability of a payment. See RIM section 4.08.01 Additional Duties for more information.

 The federal provision regarding the reporting of Expanded FMLA for COVID-19 (also known as the Families First Coronavirus Response Act, or FFCRA) is currently set to expire on Dec. 31, 2020.


COMPENSATION CORNER: new stipend in the state budget

Compensation Corner

The 2020-21 School Aid Budget provides $5 million for stipends to first-year, full-time teachers that complete the 2020-21 school year, in the amount of $500-$1000 per teacher, based on the percentage of economically disadvantaged students in the district.

The budget also requires that the district match this stipend with an additional $500 per teacher. ORS considers these stipends (both the state stipends and the district matching compensation) to be nonreportable on a DTL2 record but reportable on a DTL4 record. If you have questions, please contact us at ORS-Contract-Review@michigan.gov.

In This Issue:


Calendar November 2020

Important Dates & Reminders

Oct. 20
Due date for returning Reporting Authorization Certification (RAC) forms.

Nov. 3
Election Day — ORS is not open for business on Election Day

Nov. 3
Scheduled system maintenance (Employer Reporting website unavailable.)

Nov. 11
Veterans Day — ORS is not open for business on this state holiday.

Nov. 26-27
Thanksgiving —
ORS is not open for business on these state holidays.


Recent Communications

Recent Communications

Sept 30: Reporting Authorization Certification (via U.S. Postal Service)


Recent RIM updates

Recent RIM updates

4.04.23 Longevity Payments (created 09/29/2020)

4.06.18 Super Longevity Payments (removed 09/29/2020)

4.04.15 Wages Without Hours (updated 10/06/2020)


Helpful Tip

Helpful Tip

Please report employees who are new to MPSERS as Pension Plus 2. Once the DTL1 record posts, the plan will appear as Pension Plus 2 and contributions will calculate correctly on the download detail.

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