4.06.00: Nonreportable Compensation

Some types of payments made to school employees are not recognized as compensation for retirement purposes and should not be reported on the DTL2 record. These types of payments are excluded or are prohibited by the retirement law. With the exception of long-term disability, however, the wages must be considered as part of gross earnings when calculating member and employer contribution withholding for the Defined Contribution portion of a member benefit plan and for the Personal Healthcare Fund (PHF). These nonreportable payments include but are not limited to those on the following list.

  • Cash in lieu of benefit
  • Unused vacation or annual leave pay
  • Unused sick leave pay
  • Termination/severance pay
  • Early retirement incentives
  • In-kind compensation
  • Insurance premium payments
  • Expense payments
  • Fringe benefits
  • Long-term disability (Nonreportable on a DTL2 record; do not include as gross earnings on a DTL4 record when calculating member and employer DC and/or PHF contributions)
  • Payments to increase retirement
  • Increase over the normal schedule
  • Service credit purchase payments
  • Cafeteria plans (flexible benefit plans)
  • Super longevity pay
  • Compensation for reporting unit board members
  • Perfect attendance pay
  • Normal costs of employment
  • FICA reimbursement
  • Member Investment Plan (MIP) reimbursement/Retiree Health Care Contribution (RHCC) reimbursement
  • Retroactive wages
  • Special circumstances
  • Arbitration awards, tenure-commission ruling, court orders
  • Stipends
  • FF/ORP/UAL payments

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: 02/10/2017