4.04.21: Arbitration Awards, Tenure-Commission Ruling, Court Orders, Grievances
The retirement law grants credit when a member works and is compensated for personal services performed as a reporting unit employee. Sometimes there are situations in which credit is granted when no service has been performed or reported. The retirement system may grant service credit when it is clear that an opinion issued by an objective third party indicates that a wrongful action on the part of the employer has occurred and the member is to be "made whole" for lost wages and/or benefits.
Your reporting unit must not report the amount of any settlement payment on your retirement detail report. You must send a complete copy of the ruling, award, or settlement to ORS for a determination.
If ORS determines that the final disposition of the case can be recognized for retirement purposes, ORS will ask your reporting unit to submit wage and service information for the period in question. Once the adjustment has been made to the employee's retirement account via a DTL2 record (and DTL4 when required), the employer account will be adjusted to reflect the additional employer contributions and member contributions (if applicable). These amounts will show on the employer statement. The employee will be responsible for any member contributions due.
Examples of wrongful actions include but are not limited to:
- Improper, unlawful, or unjustified termination of employment
- Improper layoff or improper recall from layoff
- Improper placement in a position
- Improper compensation for services rendered
If ORS determines that the final disposition of the case cannot be recognized for retirement purposes, any payment made to the member must still be reported on a DTL4 record for those members who require a DTL4.
Please note: 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: 05/05/2021