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 job classifications with fewer than three members, ORS will request a normal salary schedule for their position or the most nearly identical. See the Reporting Instruction Manual Section 4.05 Normal salary schedule for more information.
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 initiation of insurances, our office will request the documents be returned within 10 business days of the request. Our office must receive all required documents to complete the processing of the retirement application.
If you have any questions regarding this process or need a contract reviewed, you can contact ORS-Contract-Review@michigan.gov.
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In November, we informed you of a new law, Public Act 250, which changes the default retirement plan for new members, effective July 1, 2024. As a result, employees who are new to MPSERS and whose first day worked is on or after that date will now default into Pension Plus 2 if they do not choose their retirement plan during their 75-day election window.
ORS may reach out to reporting units to verify the first day worked for hires who are new to MPSERS, because this date is what will decide which plan the employee would default into if they don’t choose a plan.
The Reporting Instruction Manual, the member and employer websites, and all content sent to new hires will be updated between now and July 1, and we’ll let you know when these updates are complete.
Note: the change to the default retirement plan does not change the need for DTL4 record adjustments for new DC members. For more information on these adjustments please see the RIM section 7.06.04: Adjusting posted DTL4 records for new members.
Take advantage of State of Michigan 401(k) and 457 Plans education. The State of Michigan Plans education team conducts live webinars and one-on-one appointments throughout the year. Participants can register via the State of Michigan Plans Education Hub. You can also schedule on-site presentations and one-on-one appointments by calling 517-284-4422.
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