This fiscal year (FY), your school aid fund payment includes 147g funds, which your reporting unit must use to reimburse members with the premium subsidy benefit for their FY 2025 healthcare contributions, as required by Public Act (PA) 120 of 2024. We informed you (by email and in our FAQs) that these reimbursement payments must be reported on Detail 4 (DTL4) — DC Contribution records for active employees. Reporting Instruction Manual section 4.04: Special situations also addresses this issue.
Why are these reimbursement payments reportable on a DTL4 record? Per IRS requirements, only healthcare reimbursements that are one-for-one are considered nonreportable. At this time, the amount of 147g funds you’re receiving is based on 3% member contributions made in FY 2024, but you’re reimbursing these members in FY 2025 for their FY 2025 contributions. These amounts are not exactly the same, so it’s not a one-for-one reimbursement.
Note that these 147g funds are for FY 2025 only — in FY 2026 (beginning Oct. 1, 2025), members with the premium subsidy benefit will no longer be contributing 3% for healthcare, per PA 127 of 2024. See our summary of PA 127, sent last October. At that point there will be no need to reimburse members for FY 2026 contributions.
If or when there is a legislative update that reconciles the difference between the two years’ contributions, rest assured that we will provide that information as it becomes available.
On Tuesday, Feb. 4, the Michigan Office of Retirement Services (ORS) sent most reporting units an email showing a credit that appeared on your employer statement starting Feb. 5 (see image below) to be applied to future defined contribution (DC) employer contributions.
 The email was sent to the Web Administrator at your reporting unit with instructions to share the information with business officials, payment processors, and any other payroll staff who may need it. If you did not receive this information and need to see it, please contact your Web Administrator.
If your reporting unit doesn’t have employees who make DC or Personal Healthcare Fund contributions, you did not receive this email and can ignore this information.
For more information and assistance in calculating your pay cycle payments visit the Employer Contributions Forfeiture Credit resource page.
On Monday, Feb. 10, we sent invitations to complete our 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, we thank you for your valuable feedback. If you haven’t yet responded, there’s still time to complete the survey before the deadline at 6 p.m. Monday, Feb. 23. Completing the survey should take less 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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On Friday, Feb. 21, the DC Feedback File will display rate changes for this year’s Small Steps campaign. Please ensure that DC contribution rates for any employees listed are updated based on the effective report end date on the View DC Feedback File screen. Depending on your payroll calendar, the effective report end date may be one or two pay periods following
Feb. 21.
Voya Financial’s Michigan-based education team offers live webinars and one-on-one account reviews for participants in the State of Michigan 401(k) and 457 Plans. Representatives are available to conduct education at your site, present at professional development days, and come to your benefit fair. Call 517-284-4422 to reserve a time.
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