When hiring or reporting a retiree who has waited the required nine consecutive months after their retirement effective date (per PA 184 of 2022), consider this situation.
If the retiree’s first day worked falls within a pay cycle that includes dates from before their nine-month waiting period, their pension may be forfeited. Why? Our system doesn’t know their actual start date – it looks only at the report/record begin and end dates.
ORS may contact your reporting unit for supporting information in these cases.
If this is a concern, the retiree may wait to return to employment until the first workday of the next pay cycle.
This situation is likely to happen more often now that the law, signed on July 25, 2022, has been in effect for more than nine months.
You may also wish to review our PA 184 of 2022 Frequently Asked Questions page.
Reporting units must continue to report all gross earnings on DTL4 records, even after an employee has reached their IRS contribution limit. At that point, the retirement system automatically stops requiring DC contributions, but gross earnings are still reported to Voya. After the first of the year, the system will automatically restart their contributions.
When DTL4 records are incomplete or missing from a report, your reporting unit will be required to submit adjustment records to correct the report.
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At the time of retirement or on 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 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.
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, you can contact ORS-Contract-Review@michigan.gov.
After issuing the final paycheck for an employee, remember to submit a DTL4 record with a termination date for any active or retired employee who leaves employment with your reporting unit. Doing so makes it quicker and easier for participants in the State of Michigan 401(k) and 457 Plans to access their funds.
See RIM 7.04.02: Reporting a terminated DC/PHF participant on a DTL4 record.
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