The IRS sets limits on the amount employees can contribute to a qualified plan each calendar year. Revisit the limits for 2026 posted on the Voya Financial website.
ORS tracks employee Defined Contribution (DC) and Personal Healthcare Fund (PHF) contributions reported to ORS. Pretax and Roth contributions combined for DC and PHF contributions count toward the yearly IRS contribution limit ($24,500 in 2026).
When an employee reaches the annual limit, column BJ on the download detail will show “Yes.” For members of the DC Plan, ORS will then charge only for the 4% mandatory employer Defined Contribution (DC).
The limit also applies to contributions made to certain other retirement plans, which ORS cannot track. If your reporting unit (RU) offers a deferred compensation plan outside the State of Michigan 401(k) and 457 Plans, your employees and RU are responsible for monitoring the IRS limits made collectively to all 457 plans you offer.
You may save work for your RU by monitoring amounts contributed to plans you offer. Any amount the employer withheld over the IRS limit needs to be refunded to the employee.
On Oct. 14, ORS sent invitations to complete our employer survey. Your feedback helps us improve our processes and strengthen our relationship with you.
If you already finished the survey, thank you for sharing your thoughts. If you haven’t responded yet, you still have time. The survey closes at 6 p.m. Nov. 2 and takes about 10 minutes to complete. Please note that each person may submit only one response.
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Each year, ORS reviews all employees under age 19 to make sure they are reported correctly to the Michigan Public Schools Retirement System. Your RU should review how to classify and report student employees to ORS. Use the guidelines below.
K‑12 Reporting Units
Ask these questions when reviewing employees around age 19:
- Is the employee 19 or older and a student at your RU?
Don’t report the employee.
- Is the employee 19 or older and a student, but not at your RU?
Report the employee.
- Is the employee under 19, working in a permanent position, and not a student at your RU?
Report the employee.
- Is the employee under 19 and working in a non‑permanent position?
Don’t report the employee.
Community Colleges
Ask these questions when reviewing employees under 19:
- Is the employee a full‑time community college student?
Don’t report the employee.
- Is the employee a part‑time student hired on or after July 2, 2018?
Don’t report the employee.
- Is the employee a part‑time student hired before July 2, 2018?
Check the employee’s Benefit Plan or contact ORS for clarification.
- Is the employee not enrolled in community college?
Follow standard ORS reporting procedures.
- Is the employee a student at a different college or university?
Report the employee to ORS.
If you are not sure whether to report any employee around age 19 after reviewing these guidelines, contact ORS for more assistance.
 Compensation Corner
The legislature has approved several new sources of funding for education this year. Because of this, schools are asking ORS whether and how to report pay (compensation) made with that funding. Use the list below to determine which types of pay to report on a DTL2 record. As always, if you have questions about a specific type of pay, contact ORS_Web_Reporting@michigan.gov.
27a – MI Educator Fellowship Program
Don’t report: Funds used to help pay tuition costs for employees who are working toward their first teacher certification.
27b – Grow Your Own
Don’t report: Funds used to help pay education costs for employees earning a higher degree. For example: an aide earning a bachelor’s degree or a teacher earning a master's degree.
27c – MI Future Educator Student Teacher Stipend Program
Don’t report: Funds used by teacher preparation programs to pay student teachers.
27l – Educator Compensation Program
Don’t report: Pay that’s considered a bonus.
27m – Awards for Teachers with National Board Certification
Don’t report: Pay that’s considered a bonus.
Note that pay types listed above count as gross earnings and must be included on DTL4 records.
Voya Financial is available to provide virtual and on-site education for HR representatives and your employees through professional development days and other group sessions. These opportunities can help HR teams answer questions and give employees more ways to learn about the State of Michigan 401(k) and 457 Plans. Call 517‑284‑4422 to reserve a date.
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