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The date for rolling out the Roth 457 option to MPSERS members has been postponed to Sept. 22. This means your reporting unit has more time to test your reports that use the Roth 457 file layout. For information or help with testing your reports, visit Using the Roth 457 test environment.
Effective Oct. 1, 2025, two member contribution rates will change.
Pension Plus 2 member contribution rate will change from 6.2% to 6%. The new rate will be for any DTL2 record with a record end date on or after Oct. 1, 2025. The pension normal cost of the employer contribution rate will remain 6.2%; the total employer contribution rate (including UAAL) will be 21.41%. The rate change is a normal part of the rate-setting process, but this is the first time a member contribution rate has changed at the start of the fiscal year. For adjustments to any DTL2 records first submitted before Oct. 1, 2025, the system will calculate the 6.2% contribution rate.
Members in any plan with the premium subsidy healthcare benefit will no longer be required to contribute 3% toward future healthcare benefits. The rate change was enacted in Public Act 127 of 2024. For adjustments to DTL2 records first submitted before Oct. 1, 2025, the system will calculate the 3% contribution rate.
Please work with your payroll vendor or IT team to make the appropriate changes to accommodate the member contribution rate changes.
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 Be sure to always submit a DTL2 record along with a DTL4 record when you report your employees for each pay period worked. ORS has experienced a recurring issue where employers submit DTL4 records or DTL4 record adjustments with no associated DTL2 record for the same pay period.
Not submitting the DTL2 record can cause a problem with the employee’s account. The hours reported on a DTL2 record are used to convert to service credit for vesting towards their retirement.
As part of a financial audit, the Office of Retirement Services (ORS) sent an email from ORS−Outreach @ Michigan.gov via Research.net to select staff at each reporting unit. The email requests staff to complete an online form, to report information regarding when wages are earned compared to your reporting unit’s pay cycle. This information is vital for end-of-year budget planning.
Report request emails were sent Wednesday, Aug. 6. If you have already completed the report, thank you for providing the information. No further action is needed.
If you have not yet completed your report, we ask all reporting units to complete it by the end of the day Friday, Aug. 29.
If you are a contact for multiple reporting units, it is possible we sent the report request email to another contact within your reporting unit. Please check with your other contacts on file with ORS to see whether someone else may have received the email for the other reporting unit(s).
If you received the email but are not the correct person to provide the data, please forward the email to the correct person.
If you have not received an email but believe you should have, please check your junk or spam folders, and check with your other contacts on file with ORS to see whether someone else may have received the email for your reporting unit.
As explained in previous State School Aid Updates and ORS communications, a technical fix to the Section 147g MPSERS 3% Health Care Premium Subsidy statute for payments to reporting units was expected during the State’s FY 2025, in time to adjust payment amounts to reflect current year contributions of eligible employees. While the technical fix could still occur, it will not be in time for the August 2025 State School Aid payment, the last one of FY 2025. As a result, existing statutory language — which uses prior-year 3% member healthcare contribution data to calculate this categorical — remains in effect and is to be used for payment calculation purposes. This likely resulted in districts receiving Sec. 147g amounts that vary from actual reimbursements due to employees who worked in State FY 2025.
If a future technical change to the language regarding FY 2025 Sec. 147g were to occur that impacts FY 2025 payment amounts, the Office of Retirement Services and the Department of Education will update you on any potential retroactive FY 2025 Sec. 147g payment adjustments at that time.
Community colleges and libraries can expect their last Sec. 147g payment for FY 2025 in September or October.
Refer to the FAQs for MPSERS 3% healthcare reimbursement (Sec. 147g) for questions on reportability, taxability, and accounting treatment on these reimbursements.
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The first day of school is fast approaching. Use the updated Back-To-School Checklist to ensure you aren’t missing or forgetting any important reporting tasks as the new school year begins. |
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Bonuses are payments made to employees that are not guaranteed, not associated with additional duties or merit-based activities, or not defined in the contract or union agreement. A payment is considered a bonus if it meets this definition, regardless of whether your reporting unit calls it a bonus payment.
Bonus payments are considered nonreportable compensation for retirement purposes on DTL2 records; however, they are considered part of gross earnings and should be reported on DTL4 record.
Examples of bonus payments include but are not limited to:
- Signing bonuses.
- Retention bonuses.
- Termination incentive payments.
- Revenue-sharing payments.
For more information see RIM section 4.03: Nonreportable compensation.
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Voya Financial is available to attend benefit fairs and professional development days to answer questions and discuss the benefits of the State of Michigan 401(k) and 457 Plans. Call the Michigan-based education team at 517-284-4422 to reserve your date(s).
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