MPSERS Employer News - July 2022

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MPSERS Employer News

July 2022

Michigan State Capitol

HB 4375 – Changes to working after retirement

House Bill 4375, regarding changes to the working after retirement rules for public school retirees, has passed both houses of the legislature and is pending the governor's signature. While these have not yet been signed into law, we have prepared FAQs and a legislative summary to help you understand the potential impacts to reporting. An analysis of the bill, as passed, is available on the Michigan Legislature website.

If this legislation is signed into law, it will have immediate effect. ORS will notify all reporting units via email and our website(s) regarding the impact on the tools you use and reporting instructions. We will also provide estimated timelines for changes.

ORS may not have time to implement the system change immediately based on the law change. This could cause some records to suspend. ORS will provide further instruction regarding how to report.

Watch for additional communications from our office and check the Employer Information website for notifications.

Resubmit bank information by July 29

ACH (Automated Clearing House)

On Friday, July 1, ORS sent a communication letting you know that the Department of Treasury implemented security measures that affect your ACH payments made to ORS. This security change requires reporting units to delete the current banking information on file and re-enter it by July 29. We understand this has raised some questions regarding legitimacy.

Please note that this request came from ORS, and completion is needed by the due date, or else payment may fail. ORS will be monitoring all reporting units periodically and will be reaching out if no updates have been made. See Reporting Instruction Manual (RIM) section 8.03.01: How to create or delete bank information for ACH (online) payments for additional instruction.

Woman at computer

Webinar: register now

Join us for a one-hour webinar, Understanding the MPSERS audits process, to gain a better understanding of the MPSERS audit process. Here’s what will be covered:

•  RIM Chapter 4 overview.
•  Reportable and nonreportable compensation.
•  Special situations.
•  Normal salary increases (NSI).
•  Supporting documents.

The webinar is offered four times for your convenience. Sign up for the time that best fits your schedule.

Wednesday, Aug. 3 Thursday, Aug. 4
9 a.m. session 9 a.m. session
2 p.m. session 2 p.m. session

TDP notices to members

full mailbox

In late July, an urgent Tax-Deferred Payment (TDP) notice will be sent out to 291 members who have previously entered into a Tax-Deferred Payment (TDP) 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 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 10.07.02: Processing the supplemental TDP agreement.

Suspended records for coaches wages, workers' compensation

Please wait

With the implementation of the MPSERS 457 Plan and the requirement to report a DTL4 record for all employees, your DTL2 records that have coaches wages and workers’ compensation spanning multiple pay periods may suspend with the error that no DTL4 record has been reported, when in fact one has. We are working on implementing a fix and will let you know once this issue has been corrected. At that time, your DTL2 records will post.

Also, when reporting workers’ compensation, remember that if your reporting unit uses a third-party insurance provider to pay these wages, do not include the workers’ compensation in the wage total of the DTL4 record. Please see RIM section 7.03.04: Reporting workers' compensation on a DTL2 record.

Most GASB schedules now available

GASB - Governmental Accounting Standards Board

Almost all the data schedules (tables) needed for your reporting unit’s financial reports, in compliance with the Governmental Accounting Standards Board (GASB), have been published on the Employer Information website (in the GASB section, found under Administration and Compliance).

We expect to publish the last two elements – the audited MPSERS GASB report (Schedules of Employer Allocations and Amounts for FYE Sept. 30, 2021) and Table 5 (Schedule of Covered-Employee Payroll by Employer) – later this month. We’ll notify you by email when they are published.

As a reminder, each section of the GASB section of the website has a link to its FAQ at the bottom of the page. If you have questions after reviewing the FAQs, contact ER at

Compensation Corner – audit reveals areas for improvement

continuous improvement

ORS Employer Reporting has completed the 2020 payroll audit. We thought it would be helpful to share the top five findings, along with the Reporting Instruction Manual (RIM) articles to assist you in avoiding reporting errors related to these topics.

DTL4 records and gross earnings – review RIM sections 4.03: Nonreportable compensation and 4.06: Gross earnings for defined contribution (DC) plans.

Reporting Retirees – review RIM Chapter 9: Retirees Who Return to Work and 03.08: Reporting retiree wages and hours on a DTL2 record.

Updating demographics – review RIM section 7.02.01: Reporting member demographics data on a Detail 1 (DTL1) record

Merit pay – review RIM section 4.02: Reportable compensation, subsection on merit pay.

Report wages when paid, not when earned.

Much of ORS programming for wage reporting and granting service credit is based on consistency of payroll reporting frequency.

Voya webinar

New Employee Orientation webinar

Voya logo

Voya’s New Employee Orientation is available in live- and on-demand webinar formats. It explains the differences between the Pension Plus 2 and Defined Contribution plans and the importance of making an election in the 75-day window.

In This Issue:

July and August 2022

Important Dates & Reminders

July 29
Deadline for updating ACH bank information.

Aug. 3 and 4
Webinar: Understanding the MPSERS audits process (register using links in article)

Aug. 5
Due date for the FY 2020-21 Independent Contractor/Third-Party Employee Audit response.

Aug 7
Scheduled system maintenance (Employer Reporting website unavailable).

Recent Communications

Recent Communications

7/19/2022 GASB 68 and 75 data and information now available

7/01/2022 Pending changes to working after retirement rules for MPSERS

7/01/2022 Action required: resubmit bank information immediately

RIM Updates

Recent RIM Updates

4.06: Gross earnings for defined contribution (DC) plans (updated 06/14/2022)

Helpful Tip

Helpful Tip

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