7.05.09: Adjusting DC contributions - an overview

At times you will need to make adjustments to posted DTL4 records. Submit adjustment records on your most current unposted payroll report with an end date later than the end date of the records to be adjusted. Any employer and employee contribution payment required as a result of a positive adjustment record is due on the same date as payment for the report on which the adjustment appears.

Two types of DTL4 adjustments may be needed: normal DTL4 adjustments to correct under- or overreported gross wages; and adjustments for new members who elected or defaulted into the Defined Contribution (DC) plan. See section 7.05.10 Adjusting DC Wages on a DTL4 record for instructions for normal adjustments. See section 7.06.04 Adjusting posted DTL4 records for new members for instructions on these adjustments, which involve a few more steps.

Normal DTL4 adjustments
If you underreported or overreported gross wages for an employee in a benefit plan with a defined contribution component (Pension Plus, Pension Plus 2, the DC plan, or a member with the Personal Healthcare Fund) or for a retiree, you need to adjust the gross wages on a DTL4 record.

ORS calculates and posts the DC and/or Personal Healthcare Fund (PHF) contributions amount based on the employer reported gross wages and employee's benefit plan.

Note: For adjustments to DTL4 records dated before October 2015, do not make adjustments through the Employer Reporting website. Submit a Request for Adjusting DTL4 Records Prior to October 2015 (R3490C) form to ORS.

Adjustments for new members who elected or defaulted into the DC plan
Employees who first work on or after Feb. 1, 2018 must be reported initially as members of the Pension Plus 2 plan with Personal Healthcare Fund (PHF). They have 75 days to elect either Pension Plus 2 with PHF or the Defined Contribution (DC) plan with PHF. If no election is made within the allotted 75 days, the employee becomes a participant in the DC plan with PHF.

Because DC plan contribution rates are higher than the Pension Plus 2 rates, the initial records for employees who become participants in the DC plan with PHF must be adjusted. DTL4 records must show the correct contribution amounts back to the first reported wages for the employee. Any DTL4 records that have not yet posted can be edited before they post to show employee and employer contributions at the DC plan rates.

Note: Do not adjust DTL2 records for employees who are new to MPSERS. DTL2 records remain suspended until the employee's ORS account information has been updated to reflect the DC plan election. The DTL2 records will go through the batch edit/validation process after the account has been updated, and the system will recalculate employee and employer contributions at the correct DC rates. The correct amounts will be posted to the employee's account at ORS when the DTL2 record posts. You may have to make some internal corrections at your reporting unit to make your employee's account whole, but no corrections are needed for the employee and employer contribution amounts on a DTL2 record for ORS.