This coming Monday, Sept. 22, 2025, the Roth 457 option will be available to all MPSERS members. All reports submitted on or after Monday should use the new Roth 457 file format. Reports submitted in the old file format will not pass the overnight validation process and will need to be resubmitted using the correct format in time to avoid any late fees and interest charges.
If your reporting unit has not yet tested a report using the Roth 457 test environment, it’s important that you do so in the next few days. Note that it takes a day (or overnight) to know whether a file uploaded without error.
For information or help with testing your reports, visit Using the Roth 457 test environment.
The Reporting Authorization Certification (R0688C) form is sent to all reporting units (RU) 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’s 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 has 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 update our system with the changes. Please return the completed and signed form to ORS Employer Reporting via email at ORS-Contract-Review@Michigan.gov no later than Oct. 12, 2025.
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 12.00: Managing employer contacts.
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As stated in the August 2025 newsletter, effective Oct. 1, 2025, two member contribution rates will change.
The Pension Plus 2 member contribution rate will decrease from 6.2% to 6%. The pension normal cost of the employer contribution rate will remain at 6.2%. The rate will apply to any Detail 2 (DTL2) record with a record end date on or after Oct. 1, 2025. For adjustments to any DTL2 record with a record end date before Oct. 1, 2025, the system will calculate the 6.2% contribution rate. Active members in the Pension Plus 2 Plan will see this announcement in the ORS Proactive newsletter and the Voya Financial quarterly newsletter.
Also effective Oct. 1, 2025, as a result of Public Act 127 of 2024, active members with the premium subsidy healthcare benefit will no longer be required to contribute 3% of earnings toward future healthcare benefits. For adjustments to DTL2 records with a record end date before Oct. 1, 2025, the system will calculate the 3% contribution rate. Active members will receive an email from ORS, or a letter if no email is on file, about the rate change.
Employers are responsible for reimbursing the 3% member contributions deducted for the state fiscal year ending Sept. 30, 2025, up to the amount received in state aid.
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Thank you to the reporting units who have submitted their data regarding their payroll schedule and the pay periods around September and October when the new state fiscal year begins. The online form is now closed.
Your compiled responses create a report that our Benefit Plan Design team uses to estimate a total for wages earned in September but paid in October — part of our fiscal-year-end accounting. In the big picture, your responses help strengthen the long-term health of the retirement system.
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Many compensation types that are not reportable on a Detail 2 (DTL2) — Wage and Service record are reportable as wages on the Detail 4 (DTL4) — DC Contribution record along with the employee’s current Voya contributions. These include bonus payments, severance pay, cash in lieu of an excluded benefit, and group term life insurance premiums if that amount exceeds $50,000 annually.
Some compensation types are not part of gross earnings and not reportable on a DTL4 record, such as weekly workers’ compensation when paid by a third party, short- and long-term disability, and reimbursements of any kind.
Since May 2022, DTL4 records are required for all reportable employees.
See 4.06: Gross earnings for defined contribution (DC) plans for more information.
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The market has been fluctuating all year, which can be somewhat scary. This October, we’ll explain the importance of staying the course and we’ll provide education to help you feel confident in your investing decisions. Please inform your staff to watch their email for more details on the Q&A sessions and education that will be available throughout October.
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