4.08.03: Other Payments

“Other payments” are defined as compensation in addition to base salary paid. This compensation may be specific dollar amounts or a percentage of an employee’s salary. Depending on their characteristics, these payments may or may not be reportable. An explanation of the payment should be included in the contract or bargaining agreement. Please contact ORS if you have any questions about the reportability of a payment. Some examples of other payments that are reportable or nonreportable are given below:

Examples of reportable compensation:

  • A payment given in lieu of a step increase to all members of a bargaining unit who were at the top of the salary schedule.  Payment can be given either as a one-time lump-sum payment or over a defined period. The payment can be given as a dollar amount or percentage of pay, and it must be included in the contract.
  • A payment given in lieu of a cost of living adjustment added to base salary.  Payment can be given either as a one-time lump-sum payment or over a defined period. The payment can be given as a dollar amount or percentage of pay, and it must be included in the contract.
  • A payment tied to a surplus of funds available at the end of the year or tied to an increase in student enrollment, which is documented in advance in the contract.

 

Examples of nonreportable compensation:

  • A payment tied to a surplus of funds available at the end of the year or tied to an increase in student enrollment, which is not documented in the contract. This includes one-time lump-sum payments as well as payments made over a defined period.
  • A payment that is unexplained, without definition, or without an expectation or a performance objective noted in the contract or union agreement.

 

The increase in compensation that results from payment cannot exceed the 4.03.00: Normal Salary Increase (NSI).

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 02/12/2019