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Changes to the Normal Salary Increase (NSI)
Based on the Michigan Supreme Court’s June 2, 2023, order, the Normal Salary Increase (NSI) schedules described in the Reporting Instruction Manual will no longer be used past fiscal year 2020. Because the Michigan Supreme Court has prohibited the use of these NSI schedules, the Office of Retirement Services (ORS) will request a salary schedule from reporting units for those positions that generally have fewer than three members in the same job classification. If a salary schedule doesn’t exist for that position, then ORS will request a salary schedule for the most nearly identical job classification in that reporting unit. Pensions are calculated by averaging the three or five highest consecutive years of an employee’s reportable compensation.
Determining reportable or nonreportable increases
When the position being reviewed has a salary schedule, or a nearly identical job classification salary schedule, ORS will verify that the reported wages followed the schedule. If so, the wage increase is considered reportable. Wages above the salary schedule increase may be considered nonreportable.
Changes have been made to the following RIM Articles:
4.03: Nonreportable compensation (Compensation in excess of normal salary schedule)
4.05: Normal salary schedule (formerly Normal salary increase (NSI))
4.05.01: Normal salary increase (NSI) schedules for K12, charter schools/PSAs, ISDs, and libraries (employment class codes 1110, 1120, and 1130)
4.05.02: Normal salary increase (NSI) schedule for colleges and universities (employment class codes 1110, 1120, and 1130)
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