6.01.11: State of Michigan 457 Plan for DB Members
Starting in May 2022, those with a benefit plan of Basic or MIP and with the Premium Subsidy healthcare benefit, including retirees who return to work, will be able to enroll in the State of Michigan 457 Plan.
The 457 plan gives members who don't have the Defined Contribution (DC) plan, Personal Healthcare Fund, Pension Plus, or Pension Plus 2 plan the opportunity to defer compensation to a savings plan. The 457 plan does not allow or require employer mandatory or employer match contributions. This plan is different from plans with a defined contribution component (including the Personal Healthcare Fund and the savings component of the Pension Plus plan and the Pension Plus 2 plan), which provide employees the benefit of employer mandatory and/or matching contributions to the State of Michigan 401(k) Plan in addition to the opportunity to invest in the State of Michigan 457 Plan.
Starting in May 2022, eligible members will receive an informational letter from ORS and a PIN from Voya Financial, who administers the plan. Members can use the PIN to log in to their Voya account and set up their deferred compensation.
If an employee from your reporting unit enrolls in the 457 plan through Voya, your reporting unit will be notified of the employee's enrollment through the View DC Feedback screen. See section 7.21.06: View DC Feedback.
Report this employee's 457 Plan deferred compensation using a DTL4 - DC Contribution record. See section 7.21.01: How to Report DC Contributions on a Detail 4 Record. You may also refer to Chapter 6: Member Benefit Plans and Contributions for specific instructions for reporting wages and Deferred Compensation Option contributions by benefit plan type. Online payment for 457 Plan contributions is made to the DC Contributions receipt type.
To view a table of all benefit plan and healthcare contribution rates see section 6.03.06 Contribution Rates.
Last updated: 10/19/2021