As a reminder, employees with tax-deferred payment (TDP) agreements will receive an interest update in July.
TDP agreements that were initiated on or after Jan. 1, 2004, are subject to 8% compound interest, applied annually on July 1 to the unpaid balance. This is included in terms of the completed TDP Agreement Form (R0392C).
As the employer, it's your responsibility to update the employee’s remaining TDP balance with the TDP interest in your payroll records each year after July 1. The amount appears in the Total TDP Interest Amount column of the TDP Agreement Details spreadsheet.
 See RIM sections 10.06: How to Use the TDP Download Detail Link and 10.07: TDP Annual Interest in the Reporting Instruction Manual (RIM) for more information.
The Michigan Department of Education (MDE) has rolled out a new campaign called Welcome Back Proud Michigan Educators (WBPME), which invites educators with expired credentials to return to the teaching workforce by reducing or eliminating professional learning recertification requirements. However, it is important for school personnel and payroll offices to be familiar with the Working After Retirement (WAR) guidelines before hiring a MPSERS retiree. Currently there are no waivers to WAR requirements for MPSERS retirees who return to the classroom under the WBPME campaign.
In short, the rules require a bone fide termination of public school and state employment before a retiree can return to work in a Michigan public school or public school academy (charter school). For those who retired after July 1, 2010, retirees can earn a maximum of one-third of the final average compensation used in the pension calculation if they return to work (directly hired by the reporting unit) and still collect MPSERS pension benefits.
Retirees who return to work in a critical shortage position (as defined on MDE’s list of critical shortage disciplines) or at a reporting unit that provides instruction under an extended COVID-19 learning plan may not have an earnings limit.
Retirees who are employed through a third-party employer or who work as independent contractors will forfeit their pension and health insurance subsidy for each month that they are providing a core service for the reporting unit.
Reporting units must use specific retiree employment class codes for all retirees. See the Reporting Instruction Manual section 13.01 for specific retiree codes and the Reporting Retirees on the Employer Information page for more information. You may also contact ORS Employer Reporting at ORS_Web_Reporting@michigan.gov with specific questions.
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Now that the school year is ending, many reporting tasks are shifting toward summer activities, including retirements or preparation for new employees. An updated End of School Year Checklist is now available on the PSRU to use as a reminder of these tasks.
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Voya Financial focuses on helping public school employees access their accounts and maximize their retirement benefits offered by the state. New employees should view the New Employee Orientation tutorial as soon as possible. This tutorial takes about twenty minutes and is valuable to any employee new to public school employment.
The tutorial describes the State of Michigan 401(k) and 457 Plans in general, and the Pension Plus 2 and Defined Contribution retirement plan options in detail. It also discusses the importance of understanding available options and making a decision by the deadline. Please share this link to the tutorial with your new employees: https://www.brainshark.com/Voya/MPSERSNEO
ORS strongly encourages a conversation with Voya to discuss education opportunities for your new employees. You can schedule virtual sessions with a live presenter at your individual school, district, ISD, RESA, or community college. Call Voya at 517-284-4422 to discuss options and schedule sessions.
We need your input at the Michigan Office of Retirement Services! Your ideas will ensure we have the knowledge and insight to be able learn how customers use our products and systems and then, how to best communicate to those people who are first learning.
ORS Employer Reporting is looking for volunteers for three different focus groups over the course of this summer:
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457 Plan Expansion: June 29, 2021: We are expanding availability for employee participation in the 457 Plan, also known as the deferred compensation option for all employees in the defined benefit plan with premium subsidy healthcare.
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RIM Redesign: July 26 – Aug. 20, 2021: We are unveiling our newly revised Reporting Instruction manual and would like to know what you think.
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miLogin for Employer Reporting: Aug. 3 – 20, 2021: We are implementing a new login system for the Employer Reporting site and would like to observe what customers encounter and questions they may have when using it.
If you’re interested in participating in any of the upcoming focus groups, register now and mark your calendar. Look for an email with further instructions to come about two weeks before the start date listed.
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Section 23c of the State School Aid Act of 1979 allows school districts and intermediate school districts that meet certain eligibility requirements to receive federal funding if they are providing a summer program or credit recovery program as part of COVID-19 remediation services. As part of the requirements, the district or intermediate district must provide an additional payment to eligible teachers and support staff.
If an employee is working over the summer and earning regular wages for that work, this additional payment should not be considered reportable compensation on a DTL2 record, but it should be reported on a DTL4 record.
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