6.01.12: Pension Plus 2 Plan

All employees who first worked on or after February 1, 2018, are members of the Pension Plus 2 plan, if they elect this plan by logging into miAccount. (Employers do not submit employee plan elections after February 1, 2018.) If an employee does not make an election he or she will be enrolled in the DC plan. See section 6.01.07 Defined Contribution (DC) Plan.

The Pension Plus 2 plan combines a Defined Benefit (DB) plan and a Defined Contribution (DC) plan. It includes member and employer contributions towards both the DB and DC. With the Pension Plus 2 plan, employer and member DB contribution rates both may change each fiscal year. This contribution rate will be split evenly between the employer and the member.  DC contribution rates may change based on deduction percentage changes initiated by the member through the third party administrator (TPA).

Pension Plus 2 Plan

Type

Member Contribution

Employer Contribution

Pension Plus 2 Defined Benefit

See MPSERS Contribution Rate table

See MPSERS Contribution Rate table

Personal Healthcare Fund (PHF)
effective 2/1/2018 if elected
(DTL4 record)

2.0% of gross earnings*

2.0% of gross earnings*

Pension Plus 2 Defined Contribution (DTL4 record)

(Member may increase or decrease the contribution percent, but any amount over 2% must be in whole integers, such as 3% or 4% but not 3.5%

2.0% of gross earnings*

1.0% of gross earnings* (Must match 50% of employee percent up to 1%. See table below for examples.)

Pension Plus 2 Defined Contribution Examples

Member Contribution Percent*

Employer Match**

If member has a 2% contribution...

Employer match would be 1.0%

If member changes to 1% contribution...

Employer match would be 0.5%

If member has an 8% contribution...

Employer match would be 1.0%

 

*Once an account has been established with the third-party administrator (TPA) for a member in a Defined Contribution plan or Personal Healthcare Fund the member may increase or decrease the member DC contribution or they may opt out of the plan by changing the deduction to 0%. A change in the member contribution amount may result in a change to the employer contribution percentage as well. All Pension Plus 2 members have a Personal Healthcare Fund, and the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. Any member contributions over 2% are reported as DC contributions and an employer match deduction may apply based on the benefit plan of the employee.

Last updated: 02/01/2018