Judges and elected officials first hired on or after March 31, 1997, are in the Defined Contribution (DC) plan. DC plan participants invest in the State of Michigan 401(k) and 457 Plans.
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The State of Michigan contributes an amount equal to 4 percent of pay into an account established for participants in the State of Michigan 401(k) Plan. In addition, the State matches dollar for dollar the first 3 percent of contributions each pay period.
Participants can make contributions to any combination of the pre-tax 401(k) or Roth 401(k) Plans, receiving a match on the first 3 percent. Participants may contribute any percentage to any plan up to the annual IRS contribution limits.
More details about the State of Michigan 401(k) and 457 Plans can be found in the Plan Highlights for Judges and State Office in the DC Plan.
Eligibility.
Health Insurance Subsidy Amount.
Dental and Vision.
All Judges Retirement System participants pay 100 percent of the premium.
Life Insurance.
A judge may irrevocably elect not to become or to discontinue participation as a DC plan participant. The judge must send such a request in writing to:
Office of Retirement Services
P.O. Box 30171
Lansing, MI 48909.
Probate judges are automatically sent a letter upon taking office giving them the opportunity to opt out of the State's DC plan; this decision is irrevocable. By electing to participate in the State's DC plan, the Judge will forfeit all right to participate in the Local Retirement System.
It is up to the local unit of government to determine if a judge who elects not to participate in the State DC plan may participate in the local retirement plan.
Supplemental Salary: Only the statutory judicial salary may be included in the State's DC plan. Other compensation such as any salary paid as part of the State Demonstration Project, other county paid salary for services as a judge or payments made in lieu of benefits cannot be included.
Because the salary for probate judges is channeled through the local units of government, with no payments made directly from the State, some local participation and assistance is necessary for a probate court judge to fully participate in the State DC plan. If the county chooses not to participate, the probate judge will only receive the State mandatory employer contribution of 4% of salary. Note: No local action is necessary for district and circuit court judges because deferrals are deducted from their State base salary.
Under the State DC plan, there is a required minimum 4% employer contribution of the judge's gross salary for retirement purposes and up to an additional 3% match for a total of 7%. The Finance Department of the Supreme Court will be responsible for making employer payments to the probate judge's State DC account.
Because payroll for the probate judges is handled at the local level as noted above, their salary deferrals to the State DC plan take place at the local level. The State of Michigan and its third-party administrator, Voya Financial®, handle all other aspects of the State DC plan.
Resolution of Acknowledgement: The county must complete a Resolution of Acknowledgement form (R438B). By completing and submitting this form, the county acknowledges its designation as a participating "employer" in the State DC plan. If your county has not submitted this form you may download a copy by clicking on the link above.
Supplemental Salary: Only the statutory judicial salary may be included in the State's DC plan. Other compensation such as any salary paid as part of the State Demonstration Project, other county paid salary for services as a judge or payments made in lieu of benefits cannot be included.
Loans: Probate judges are allowed to take out loans from their State DC account. The judge may initiate the loan via the Voya Voice Response telephone system or by logging in at http://stateofmi.voya.com. Voya will contact the local office regarding the amount and duration of the payments. This amount is a post-tax deduction and should be reported along with any salary deferrals the judge has.
Contributions: Employee contributions are allowable up to the maximum amount specified under the Internal Revenue Code. The maximum allowed for 2014 is 93% of salary not to exceed $17,500. This maximum amount would also include any participation in a local government 401(k) plan. An additional $17,500 may be contributed to the Plan I/457 if the judge is allowed to participate in this plan. Maximum Deferral rates change annually. Voya will track contributions made on behalf of the DC Plan, but any contributions made from a different plan are the responsibility of the Judge to track.
Salary deferrals made by the probate judge to the State DC plan must be deducted and sent to Voya by the local unit of government. If the probate judge in your county receives a portion of his or her salary from different units of government, it will be necessary for you to coordinate with the other county(ies) and only one county submits the necessary salary deferrals. In order for the Supreme Court Finance Department to submit the appropriate State match in a timely fashion, the judge's salary deferral must be submitted to Voya no later than the 5th business day after each pay date. A State of Michigan Defined Contribution 401(k) Probate Judge Contribution Report (R0437B) must accompany the contributions sent to Voya. A copy of the report must either be faxed or mailed to the Office of Retirement Services. Instructions for completing the form are located on the reverse side of the form.
Contributions may be submitted to Voya either by check or wire. If the funds are wired, the State of Michigan Defined Contribution 401(k) Probate Judge Contribution Report (R0437B) may be faxed. Please give Voya 24 hours notice prior to the wiring of any funds.
Bank Name: State Street Bank, Boston, MA
Account Number: 1R1A4684-0187
Routing Number: 011000028
Account Name: State of Michigan Defined Contribution Plan
Voya Financial
Attn: State of Michigan Plan Administration
30 Braintree Hill Office Park
Braintree, MA 02184
If you have any questions regarding the submission of funds to Voya, the following personnel at Voya will be able to assist you:
Diane Shaw
Telephone: 781-796-9228
Web: diane.shaw@us.voya.com
