Now that the school year is ending, many reporting tasks are shifting toward summer activities, including retirements or preparation for new employees.
An updated End of School Year Checklist is now available on the Employer Information site to use as a reminder of these tasks.
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In November and May we informed you of Public Act 250, which changes the default retirement plan for new members. Effective July 1, 2024, employees who are new to MPSERS, whose first day worked is on or after that date and have not yet chosen their retirement plan during their 75-day election window will now default into the Pension Plus 2 Plan.
ORS will reach out to reporting units to verify the first day worked for hires who are new to MPSERS and who have not selected their retirement plan. This date will decide which plan the employee would default into.
The Reporting Instruction Manual (RIM), the member and employer websites, and all content sent to new hires will be updated by July 1. 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.
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On Tuesday, June 10, we sent invitations to complete our Employer 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, thanks for your valuable feedback. If you haven’t responded, there’s still time to complete the survey before the deadline at 6 p.m. Tuesday, June 25. Completing the survey shouldn’t take more than 10 minutes.
If your email address is in our contacts database as both payroll and administrative positions, you will receive only one email invitation to this survey. The survey will ask which type of position describes your primary role. You may take the survey only once.
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As a reminder, employees with tax-deferred payment (TDP) agreements will receive an interest update in July.
TDP agreements that were initiated on or after Jan. 1, 2004, are subject to 8% compound interest applied annually on July 1 to the unpaid balance. This is included in the terms of the completed TDP Agreement Form (R0392C).
As the employer, it's your responsibility to update the employee’s remaining TDP balance with the TDP interest in your payroll records each year after July 1. The amount appears in the Total TDP Interest Amount column of the TDP Agreement Details spreadsheet.
 See section 10.06: Updating payments due to TDP annual interest in the Reporting Instruction Manual (RIM) for more information.
If you have received requests for documentation for a retiring employee, you may have seen a new item on the list of required documents. For job classifications with less than three members, a salary schedule is now on the list of required documents.
We are aware that some reporting units are unsure how to comply with this requirement, especially when a salary schedule doesn’t exist for the position. In these cases, ORS needs a salary schedule for the most nearly identical job classification. As a reminder, our Salary Schedules and Allowable Salary Increase FAQs page can help with this and other questions you may have.
A salary schedule includes multiple years, typically including future years, and shows normal increases in the base salary for a position from one year to the next. The schedule must be in place before the compensation was earned.
Using the salary schedule and the associated documentation, ORS will evaluate reported compensation in view of allowable salary increases, as outlined in the Retirement Act, which requires that all compensation increases fall under an established normal salary schedule.
If we have requested a salary schedule for a retiring employee, you must address the request promptly, so that retiree’s first pension payment is not delayed. If you have any questions or need additional information, please contact our office at ORS-Contract-Review@michigan.gov or 800-381-5111.
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The Employer Toolkit is a resource for administrators and HR professionals to better understand the State of Michigan 401(k) and 457 Plans. Make sure to review and bookmark the site, as it provides detailed contact information, FAQs, frequently used materials and more.
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