4.04.16: Workers' Compensation (Wage Code 01)
Workers’ compensation is considered the same as sick leave pay when absent from work and is reportable compensation unless the employer/employee relationship has been terminated.
- Report hours that would have normally been worked by the member if he or she was not receiving workers’ compensation.
- All weekly workers’ compensation (WWC) wages reported on a DTL2 record on or after July 1, 2010, regardless of the date the wages were earned, are subject to employer and member contributions and retiree health care contributions for the Defined Benefit portion of a member’s benefit plan.
- Workers’ compensation wage totals should not be used when calculating member and employer contribution withholding for the Defined Contribution portion of the retirement plan. No part of WWC wages should be entered in the Employer Reported Wages field on a DTL4 record.
- Payments to bridge the differential between workers’ compensation and full wages, if tied directly to a WWC claim, are also reportable compensation. Documentation showing the connection between the payment and a specific WWC claim must be provided to ORS upon request.
Occasionally, a reporting unit will have employees on workers’ compensation who also work at temporary jobs. Wages and hours earned for actual work performed while receiving workers’ compensation are reportable compensation.
The retirement system includes reported and posted workers’ compensation in the year-to-date totals used to calculate the MIP graded, MIP fixed, MIP Plus, Pension Plus, and Pension Plus 2 amounts. For more information, see section 7.13.00: How to Report Workers' Compensation on a DTL2 Record.
WWC and additional types of compensation related to WWC (for example, sick leave pay or payments made to bridge the differential between WWC and full wages) are subject to the rules governing normal salary increases. If the sum of WWC and related compensation exceeds the NSI schedule, the excess compensation is not reportable. See section 4.03.00 Normal Salary Increases (NSI).
Reportable and nonreportable “compensation” is defined in MCL 38.1303a and only applies to active MPSERS members. For information on reporting earnings for retirees please see section 9.01: Earnings Of Retirees Who Return to Work.
Last updated: 03/20/2019