Now that the school year has ended, many employees have started receiving their summer spread wages. For 10-month employees who opt to spread their pay throughout the summer months, please use Wage Code 08 – Summer Spread Wages on Detail 2 (DTL2) – Wage and Service records.
For 10-month employees who also work during the summer, report wages using two separate DTL2 records, one with Wage Code 01 – Regular Wages and one with Wage Code 08. Note: Summer spread wages can only be reported June 1 through September 30. Never use Wage Code 08 to report a new employee’s first pay periods.
For more information, see section 7.03.03: Reporting summer spread wages on a DTL2 record.
A final payroll detail (FPD) is the last step in reporting for an employee who is retiring. The information provided in the FPD is critical for the accurate calculation of each member's pension.
Important reminders
- Do not use symbols in the Excess Amount Comments text field or in the general Comments text fields. Certain symbols in these fields can prevent the FPD from being submitted.
- Be very deliberate when clicking the Save or Submit buttons to upload the completed FPD. If you accidentally double-click either of those buttons, the FPD may not be saved or submitted.
ORS has a tutorial to help you through the FPD process. Chapter 11: Final Payroll Details of the Reporting Instruction Manual (RIM) is also a helpful resource when completing FPDs.
As a reminder, do not submit wage records or a Detail 1 – Member Demographics (DTL1) record for employees who are under the age of 19 while in a temporary, intermittent, an irregular seasonal, or athletic position. The Retirement Act states that these employees are not members of MPSERS, until they turn 19 or change jobs to one that’s a regular position.
By not submitting these records, you will also eliminate the need to make future adjustments and the need to submit a termination record. Please see Student employees in section 3.02 Special membership circumstances of the Reporting Instruction Manual.
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 agreement and:
- Have interest charges that exceed 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.
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Interest has been posted to Michigan Public School Employees Retirement System (MPSERS) member accounts effective as of July 1, 2023.
The interest rates are as follows:
- Basic and MIP members: 4.60%.
- Pension Plus members 4.07%.
- Pension Plus 2 members: 5.98%.
ORS invests defined benefit contributions from both members and employers to fund future retirement benefits. Each year, ORS credits each defined benefit member's account with an interest payment on their contributions that have been held on account for one full year.
You may refer employees to the full list of the Defined Benefit plan interest rates dating back to July 1, 1988, available on the ORS member website: Defined Benefit Plan Interest Rates.
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Most of the data schedules (tables) needed for your reporting unit’s financial reports, in compliance with the Governmental Accounting Standards Board (GASB), will be published on the Employer Information website by July 21. GASB materials are found in the Administration and Compliance section.
We expect to publish the last two elements – the audited Michigan Public Schools Employees’ Retirement System GASB report (Schedules of Employer Allocations and Amounts for FYE Sept. 30, 2022) and Table 5 (Schedule of Covered-Employee Payroll by Employer) – by early August. We’ll notify you by email when they are published.
As a reminder, each section of the GASB webpage has a link to its FAQ at the bottom of the page. If you have questions after reviewing the FAQs, contact ER at ORS_Web_Reporting@michigan.gov.
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Voya’s New Employee Orientation is a vital resource to help new hires understand their retirement benefits in the State of Michigan 401(k) & 457 Plans. 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. Available in in-person, live- and on-demand webinar formats.
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