Last week we informed you via email that Public Act (PA) 147 of 2023 is now in effect. The new law has an impact on retirees who have returned to work or are considering it. The good news for employers is that there are no significant changes to how you report these retirees. Continue to use the Working after retirement – employer guide to determine which class code to use (for records with end dates after July 23, 2022). For more information on the new law as it affects employers, review our updated Reporting Retirees page and our FAQs for PA 147 of 2023.
Information for retirees who have returned to work is also on our member website, under Working After You Retire. Or you may wish to read the exact language of PA 147 of 2023.
ORS will soon be contacting all reporting units that have outstanding unposted records for members who are beyond the election window of 75 days. All records need to be posted in a timely manner so that our members get the service credit and money into their retirement accounts.
If your reporting unit has outstanding suspended records, please start to work through the error messages to get the records to post. You can review the following sections of the Reporting Instruction Manual (RIM) to get started.
7.03.00: Detail 2 (DTL2) records - common error messages
7.04.00: Detail 4 (DTL4) records - common error messages
Other sections in RIM Chapter 7 provide more specific detail. For further assistance, contact Employer Reporting at ORS-WebReporting@michigan.gov.
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There may be times where a reporting unit pays a new employee before they have actually performed services for the RU, such as with contract payments due or a signing bonus. It is important to remember that money paid before work is performed are not reportable wages on DTL2 or DTL4 records.
The Public School Employees Retirement Act defines compensation as “remuneration earned by a member for service performed as a public school employee.” An RU can pay their employees whenever they deem fit or are required by contract, but wages are not considered reportable unless that new employee has begun working.
If you have questions, contact Employer Reporting at ORS_Web_Reporting@michigan.gov.
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As a result of Public Act 103 of 2023, two new MPSERS School Aid Fund (SAF) payments associated with offsetting retirement costs will be dispersed monthly during fiscal year 2024, November through August:
- 147(f) MPSERS 0.5 UAAL RATE REIMB, allocated to participating K-12 and intermediate school districts.
- 147a(3) MPSERS COST OFFSET - ISDS AND DISTRICT LIBRARIES, allocated to participating libraries and intermediate school districts.
Both payments will be allocated based on each reporting unit’s proportionate share of payroll. No action is required.
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The ORS Retirement Reporting Basics webinar is now available online. This series of seven brief and informative videos teaches the fundamentals of successfully completing retirement payroll reports.
Although it's aimed at recently hired reporting staff, especially for recently hired ER 1- 5 and Payment Processors, it might be helpful as a review for anyone who works on retirement reports.
Here’s what you can learn:
- How to use the pay cycle calendar to keep on-track in your pay cycle reporting.
- Find the best way to load a report for your reporting unit.
- Know the differences between types of detail records.
The videos are available here: Employer Reporting - Retirement Reporting Basics Webinar.
On Thursday, Oct. 12, we sent invitations to complete our survey. Your responses help ORS better understand how we can improve our processes and build a stronger relationship with you.
For those who have completed the survey, thank you for your valuable feedback. If you haven’t yet responded, there’s still time to complete the survey for payroll staff or the survey for administrative staff before the deadline at 6 p.m. Friday, Oct. 27. Completing the survey shouldn’t take more than 10 minutes.
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State of Michigan 401(k) and 457 Plan participants have access to Voya’s one-on-one account reviews year-round. Topics include descriptions of the individual’s retirement and healthcare plans and retirement readiness.
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