7.03.08: Reporting retiree wages and hours on a DTL2 record

Report retirees using a Detail 2 (DTL2) record and (if needed) a Detail 4 (DTL4) record. There is no difference between retiree DTL4 records and active member DTL4 records.

The laws regarding working after retirement affect employer contributions, potential earnings limits, and other concepts covered in Chapter 9. The ORS Employer Reporting system uses the employment class code on the DTL2 record to distinguish between retirees in different situations as it affects employer contributions. To ensure accuracy in reporting retirees, ORS offers tools to help you report retirees employed by your reporting unit. For accurate reporting, you must review these tools for each retiree.

  • The Member Benefit Plans screen will verify that your new employee is a MPSERS retiree. In addition, the Member Benefit Plans screen gives you a retirement effective date and shows information about critical shortage service credit hours when appropriate. You will need this information when using the Working After Retirement - Employer Guide (see below).

Reporting retirees' hourly wages
For retirees who return to work on an hourly basis, report the hours and gross wages according to your payroll calendar on the pay cycle when it was paid, not earned. See section 9.01 Earnings of retirees who return to work for the rules on reporting retiree earnings. Note that for retirees only, even payments that are considered nonreportable for active members should be included on the DTL2 record (and if needed, a DTL4 record) as reported wages. In addition, retiree wages must always be reported with hours.

Reporting retirees with a contract
You must always report according to your payroll calendar, even if your reporting unit arranges a contract with a retiree and chooses to pay that person a predetermined amount for the year. If your reporting unit chooses to pay a retiree over 26 pay periods, report the wages in the actual pay periods they are paid. Always include hours on a retiree's DTL2 record so it does not suspend. For example:

A reporting unit negotiates a contract with a retiree for $13,000 in total compensation for working two hours a day at $25/hour.

  • $25/hourly rate
  • 2 hours a day ($50/day rate)
  • 10 Business days a pay period
  • 26 pay periods.

50 x 10 = 500 x 26 pay periods = $13,000

On your DTL2 record, report 20 hours and $500 gross wages for each pay period throughout the payroll calendar. Do not change the hours or wages for the retiree in a way that is inconsistent with your payroll calendar.

If a retiree works in more than one position, you may combine all wages and hours onto one DTL2 record under one employment class code as long as the class code is valid for the wages being reported. If the positions have different pay rates, use additional DTL2 records using a different, valid retiree class code on each record.

Wage Codes
For all retiree DTL2 records, use Wage Codes 07, 75 or 76.

  • Use Wage Code 07 - Retiree Wages to report regular retiree wages and hours.
  • Use Wage Code 75 - Retiree Wages Positive Adjustment for positive adjustments.
  • Use Wage Code 76 - Retiree Wages Negative Adjustments for negative adjustments.

For more information on wage codes, see section 13.02.02: Detail 2 records - wage codes.

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Employment class codes and UAAL requirements
To determine the appropriate employment class code and whether unfunded actuarial accrued liability (UAAL) contributions are due, follow instructions on the Working After Retirement - Employer Guide. For more information on class codes, see section 13.02.01: Detail 2 records - employment class codes and definitions for the full list.

Retiree gross wages, hours, and employer UAAL contributions (if required) are reported on a DTL2 record.

DTL2 record fields and retiree reporting

  • Reported Wage Codes - Wage codes 07, 75 and 76 are the only wage codes that can be used to report wages with a retiree class code. See section 13.02.02: Detail 2 records - wage codes.
  • Employer Reported Wages - Enter wages paid. See section 9.01 Earnings of retirees who return to work.
  • Employee Contributions - Leave this field blank. Retirees do not make defined benefit employee contributions. 
  • Employer Contributions - If UAAL is due on this retiree, enter employer contributions here.
  • Employment Class Code - Enter the code determined by the Working After Retirement - Employer Guide.
  • Contract Begin Date: (MM/DD/YYYY) - Enter only if Pay Rate is equal to or greater than $100.00.
  • Contract End Date: (MM/DD/YYYY) - Enter only if Pay Rate is equal to or greater than $100.00.