As a result of Public Act (PA) 15 of 2025, reporting units (RUs) can expect the following regarding MPSERS School Aid Fund (SAF) payments for fiscal year (FY) 2025:
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147a(2) MPSERS Cost Offset: K-12, ISDs, and charters/public school academies (PSAs) will receive a prior year adjustment in the October SAF payment. PA 15 included an increase in appropriation for FY 2025. 147e MPSERS Reforms Defined Contribution payments will have no change or impact despite the decrease in appropriation for FY 2025.
The Roth 457 option has been available to all MPSERS members since Sept. 22. Voya Financial emailed members about the option on Sept. 30. Accordingly, the test site created for reporting units to test files is no longer available. Reports you submit must be in the new format or they will not upload successfully.
As members choose the Roth option through Voya, their choice will show up on your DC Feedback Files in the new columns for Roth 457 accounts. In the coming weeks or months, it’s likely that some of your employees will choose this option, and it’s important that the contributions are made promptly and accurately.
A new section of the Reporting Instruction Manual (RIM), 6.03.06: State of Michigan Roth 457 contributions, addresses how to report Roth 457 contributions on a Detail 4 - DC Contribution (DTL4) record. Our resource page, State of Michigan Roth 457 Accounts, has further information about the transition, including FAQs.
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We’ve refreshed our Employer Survey to better reflect the needs and experience of reporting unit staff. This updated version is shorter and designed to help us better understand the challenges you face when reporting.
We want your feedback on the clarity of the Reporting Instruction Manual (RIM) and the usefulness of current tools, particularly for newly hired staff. Your input is essential in helping us improve our services and strengthen our partnership with you.
You’ll receive your survey invitation by email next week. As in the past, you’ll have two weeks to submit your responses.
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If a retiree is hired directly by a reporting unit, all payments must be reported, including but not limited to annuity, bonuses, cash in lieu, and early retirement incentives, on both a Detail 2 - Wages and Hours (DTL2) record and a Detail 4 - DC Contribution (DTL4) record for that retiree.
If a retiree returns to work indirectly for a reporting unit, all payments must be reported, including but not limited to annuity, bonuses, cash in lieu, and early retirement incentives, on a DTL2 record but not on a DTL4 record for that retiree.
For more information regarding reporting retirees, view 7.03.08: Reporting retiree wages and hours on a DTL2 record, and 9.01: Earnings of retirees who return to work. You may also wish to view the Working after retirement - employer guide.
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In the email sent on Oct. 2, Frequently Asked Questions regarding the 3% HCC rate change, we misstated the reportability of Sec. 147g reimbursement payments to employees. It should have said that these payments are reportable on a Detail 4 - DC Contribution (DTL4) record. The email posted on the Public School Reporting Units (PSRU) website has been corrected. See question 16 on the FAQs for MPSERS 3% healthcare reimbursement (Sec. 147g).
Now available in the State of Michigan 457 Plan: the Roth saving option! This after-tax savings option is another low-cost way to save in the State of Michigan 401(k) and 457 Plans. You and your employees can learn more by reading the Guide to Roth Contributions or by registering for a virtual Q&A session and asking questions in a small group.
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