|
The November 2024 State School Aid Update from the Michigan Dept. of Education (MDE) stated that Section 147g would not be included in reporting units’ State school aid payments until as late as February 2025, as we awaited a technical fix to the statutory language. The statute’s current language uses prior year 3% member healthcare contribution data to calculate allocations, which will result in districts receiving inaccurate amounts to reimburse current year employees’ contributions. The technical fix to use current year contribution data has not yet been made and is unlikely to happen in time for February payment processing.
Therefore, to prevent further delay to eligible employees’ reimbursements, Section 147g allocations based on prior year data (current language) will be included in reporting units’ February 2025 State school aid payments and will cover October 2024 through February 2025.
Reporting units should begin reimbursing eligible employees their actual 3% healthcare subsidy contributions, noting that Section 147g allocations may not yet match actual contributions. The allocations may be more or less than actual amounts, due to differences in the number of employees and/or changes in payroll from prior to the current year. In the meantime, MDE and ORS are continuing to pursue the technical fix to Section 147g language to reflect current year contribution data in allocation calculations.
We have updated our FAQs for MPSERS 3% healthcare reimbursement (Sec. 147g) page regarding this issue and will continue to update it as we learn more.
If you have questions regarding Section 147g, contact ORS at 1-800-381-5111 or ORS_Web_Reporting@michigan.gov, or Christopher May, MDE State Aid and School Finance Unit, at 517-335-1263 or MayC@Michigan.gov.
|
