The Office of Retirement Services (ORS) is adding human-centered design into our work. This means we want to build solutions with our users, not just for them. As we develop new tools and make improvements, we want to make sure they match the real experiences and needs of those who use our systems most: our reporting unit (RU) staff.
We’re looking for volunteers to give feedback on current and future processes. Your experience is important and will help us make updates that meet user needs. Please send an email to DTMB-ORS-ER-Outreach@Michigan.gov for more information.
Michigan’s State School Aid Act includes updated language in Section 27l for fiscal year (FY) 2027. The law states that the funds appropriated under this section for payments to educators are one-time bonus payments. Under section 3a(3) of the Public School Employees’ Retirement Act of 1979, 1980 PA 300, MCL 38.1303a, these payments are not considered compensation for retirement purposes. They are not subject to member or employer contribution requirements.
Educators include teachers, paraprofessionals, counselors, bus drivers, and other school staff.
After review, ORS has determined that these payments are not reportable as compensation. Do not include these payments on DTL2 records but include them on DTL4 records for any employees who receive compensation derived from this funding. This applies regardless of the wage code used.
Before FY 2027, these payments were not explicitly defined. They were considered reportable based on the definition of reportable compensation in state law.
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The first day of school is fast approaching. Use the Back-To-School Checklist (R1076C) to ensure you aren’t missing or forgetting any important reporting tasks as the new school year gets underway.
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ORS sent an email to one person at each RU. It asks staff to fill out an online form about when wages are earned compared to the pay cycle of the RU. This information is vital for end-of-year budget planning.
The first emails went out on Thursday, Aug. 6. If your RU has already completed the report, thank you. Nothing more is required. If your RU didn’t complete it, look for a reminder email sent Thursday, Aug. 13 from ORS−Outreach@Michigan.gov via Research.net. Please finish the form by the end of the day on Monday, Aug. 31.
If you report for multiple RUs, check with your other contacts to see if someone else received the email. Forward the email if you’re not the right person to answer it. Check your junk folder if you expected to get the email but do not see it.
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During an audit, your RU may need to make an adjustment over several pay periods. ORS requests these adjustments based on information we receive from your RU during the audit.
When you get a request, determine which specific pay periods require an adjustment. This is important because reporting a large adjustment for one pay period may affect the service credit employees may have earned. This can happen when the corrections should have been reported separately. Reporting the full adjustment in one pay period may also affect employees’ W-2s. This is especially important because a school FY spans parts of multiple calendar years.
Accurate adjustments will help prevent reporting or tax issues in the future.
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As families get ready for a new school year, ORS is launching a back‑to‑school social media campaign from Wednesday, Aug. 26 to Thursday, Sept. 17. The campaign encourages members to check in on their retirement planning. It focuses on simple steps members can take, like updating contact information, reviewing beneficiary designations, and using retirement planning tools. Share this with your staff to follow along on the ORS Facebook and Instagram channels.
Voya Financial is available to support benefit fairs, professional development days, and other on-site education events throughout the school year. These sessions can help staff learn about the State of Michigan 401(k) and 457 Plans. They can also help answer staff questions about the Plans.
Call the Michigan-based education team at 517-284-4422 to reserve your date or dates.
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