Michigan Office of Retirement Services (ORS) completed the Weekly Workers’ Compensation (WWC) audit for FY 2019 and reporting units are currently making adjustments.
During the audit, it became evident that WWC wages are being reported incorrectly under the regular class code instead of Class Code 8000 – Weekly Workers’ Compensation. For anyone you are reporting with WWC please use the Class Code 8000. See section 7.03.04: Reporting workers' compensation on a DTL2 record in the Reporting Instruction Manual (RIM) for information on how to correctly report your WWC.
Important: For WWC wages paid on or after July 1, 2019, ORS will require your reporting unit to submit adjustment records to correct the class codes.
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.
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 See section 10.06: Updating payments due to TDP annual interest in the Reporting Instruction Manual (RIM) for more information.
 When it’s time to make your payment, it’s important to ensure you’re choosing the correct cash receipt type (DB Contributions & TDP or DC Contributions) on the Payments screen.
Choosing the incorrect receipt type results in a payment made to the wrong statement, followed by late fees and assessed interest.
If you’ve made a payment to the incorrect receipt type (DC payments made to DB or vice versa), contact ORS with the information referenced in section 8.03.05: How to correct a cash receipt of the Reporting Instruction Manual (RIM).
As a reminder, reversal requests are no longer granted for fees and interest assessed due to a cash receipt error.
At the time of retirement or upon request, ORS requires a full review of contract(s), contract addendums, and reported wage details to ensure accurate calculation of a member’s account. For any payments that are considered above the base salary or not in the contract, reporting units must submit written documentation. This may include, but is not limited to, reimbursements, bonuses, merit pay, annuities, longevity pay, etc.
In order to ensure timely calculation of the member's retirement and insurances, our office will request the documents be returned within 10 business days of the request.
If you have any questions regarding this process or need a contract reviewed, contact ORS-Contract-Review@michigan.gov.
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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 Employer Information site to use as a reminder of these tasks.
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Note: The article below is the first of a series of articles provided by our partner, Voya Financial. Look for more articles from Voya in future issues.
The MPSERS Employer Toolkit, developed by Voya Financial to assist payroll staff with reporting, is now available.
Take a minute to review and bookmark the site since it provides detailed contact information, FAQs, frequently used materials, and more!
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