The Reporting Authorization Certification (R0688C) form is sent to all RUs near the beginning of each school year. This form includes the contacts and users for your RU, as listed in the “Your Contacts” section on your Employer Reporting homepage. It is critical to review this information to make sure the list is correct, complete, and up to date, and to make sure the staff at your school have the proper user access to load and process payroll reports and payments.

Having current contact information is also important to ensure that ORS is contacting the correct staff when communicating with RUs about changes in retirement law, reporting and payment issues, programming updates, and more.

Superintendents or chief administrators (ADM1) should receive this form soon. If there is a change to the authorized individuals we have listed, please update the designated area on the form with the new information. We will then update our system with the changes. Please return the completed and signed form to ORS Employer Reporting by email at ORS-Contract-Review@Michigan.gov no later than Oct. 24, 2024.

Changes needed now or anytime throughout the year must be made by the Web Administrator on the Employer Reporting website. To make changes to the Web Administrator or Payment Processor access, complete the necessary Web Administrator Authorization (R0687C) form and/or the Payment Processor Authorization (R0842C) form, depending on which roles need to be updated. For more information, refer to the Reporting Instruction Manual (RIM), 12.00: Managing employer contacts.

For members to retire under the early reduced pension provision, they must meet the following conditions: 

• Worked in the month of their 55th birthday (an exception may apply if they were born in a summer month; see Summer Birthday Provision). 
• Have at least 15 but fewer than 30 years of service (YOS), with at least 10 YOS earned under this system.
• Earned creditable service in each of the five school FYs before — including the month immediately before — their retirement effective date. The FY in which they retire counts in the five years. (Learn more about earning service credit.) 
• Terminated Michigan public school service immediately before their retirement effective date. 

Because members must work (and terminate) in the month before their retirement effective date to qualify for the early reduced provision, please verify that termination dates are correct when completing Final Payroll Details (FPD). If the termination date is months after they last worked, it may cause issues with pension eligibility.

On Oct. 8, 2024, we notified most of you about PA 127 of 2024 (university RUs received a different email about PA 127 of 2024). This law impacts contributions for both the current FY and FY 2025-26.

In the current FY, the impact is seen in the MPSERS unfunded actuarial accrued liability (UAAL) stabilization rate on the second page of the updated contribution rate tables for non-universities. The updated rate table is posted on the Contribution Rates page of the Employer Information website. This budgeting rate has changed and is effective 90 days after the legislature adjourns sine die, but otherwise reporting requirements have not changed for FY 2025, which ends Sept. 30, 2025.

Beginning Oct. 1, 2025, however, members with the premium subsidy healthcare benefit will no longer be required to contribute the 3% healthcare contribution. At that time, employers can expect to see an increase in their other post-employment benefits normal cost contributions for members with the premium subsidy benefit. In addition, the employer UAAL contribution rate cap for non-universities will be reduced from 20.96% to 15.21%. RUs can expect updates to the rate tables for FY 2025-26.

These changes to the retirement act will require numerous system changes at ORS, but it doesn’t go into effect for almost a year. ORS will keep you updated as information becomes available and before any reporting changes are in effect.

A successful retirement is different for everyone. We’ve created some checklists for a starting point, but it’s important that you and your employees set goals with your individual end points in mind. Participants in the State of Michigan 401(k) and 457 Plans should schedule an account review with Voya to ensure they are on track for the future they envision.