7.11.00.01: Reporting Employees New to the MPSERS System

Before reporting wages and service for the first time for an employee new to your reporting unit you must check the Member Benefit Plans link on the Employer Reporting website to find out if the new employee is already a MPSERS member or is new to the MPSERS system. See section 6.02 Determining Benefit Plan and section 7.11.00.02: How to Report New to MPSERS Employees.  If the employee is already a MPSERS member, see section 7.11.00.00: Reporting Employees New to Your Reporting Unit earlier in this chapter.

New to MPSERS Retirement Plan Election 

Employees who first work for a Michigan public school reporting unit on or after February 1, 2018, have 75 calendar days from their first payroll end date to make a retirement plan election. They can choose between Pension Plus 2 or the Defined Contribution (DC) plan. If they do not make a retirement plan election, and the deadline passes, they will default into the DC plan and their retirement plan election can’t be changed. The retirement plan election is made by the new employee using miAccount. Regardless of their election, all new members are participants in the Personal Healthcare Fund (PHF), an investment account for covering healthcare expenses in retirement.

Reporting New to MPSERS Employees 

1.

Follow the reporting instructions in the Member Benefit Plans link.

For new to MPSERS employees, where result show No record on file, you are instructed to report them as Pension Plus 2 with PHF.

  Screenshot of the Member Information Display showing No record on file.
 
2.

View Election Status

Use the View Election Status link to find out if the new employee’s has made a retirement plan election, how many days are left in their election window, the dates that ORS sent them letters, and if they defaulted into the DC plan. If they elected or defaulted into the DC plan, this link will tell you if adjustments to the DTL4 record are required.

 

Screenshot of the Employer homepage showing the View Election Status link

3.

New Members Yet to Make Election section

In this section, you can view see the number of days left in a new employee’s election window and the dates that ORS sent them election communications.
 

Screenshot of the New Member Election Screen showing New Members Yet to Make Election

Screenshot of New member election communications showing dates that ORS sent election communications.
 

4.

New Members Who Have Made Their Election section.

In this section you can see when a new employee has made their retirement plan election or defaulted into the DC plan.

By clicking on their link, you can see the details of their retirement plan.

 

Screenshot of View Election Status showing where to click to see member elections.

 

5.

New employees who elect Pension Plus 2 retirement plan.

The New Member Election Communication will show you the date they made their election in miAccount. Since they were reported under Pension Plus 2 from the beginning, there is nothing else to do to their account.

 

Screenshot of New employee who selected Pension Plus 2.

 

6.

New employees who elected or defaulted into the DC retirement plan.

The New Member Election Communication will show you the date they made their election in miAccount or the date they defaulted into the DC plan.

Since they were reported under Pension Plus 2 DTL4 adjustment will be required. See section 7.21.05.00: How to Adjust DC Contributions on a DTL4 Record.

 

Screenshot of New employees who elected or defaulted into the DC retirement plan

 

7.

New employees who elected or defaulted into the DC retirement plan. – Action required

Once you have completed the adjustments. Check the box in the DTL4 Adjustments Completed column.
  Screenshot of New employees who elected or defaulted into the DC retirement plan. - Action required
   

Prior to your new employee making a retirement plan election, you should report your employee to ORS as Pension Plus 2 with PHF and remit the ORS calculated contribution amounts. Refer to section 6.01.12: Pension Plus 2 Plan contribution rates. Valid DTL1 and DTL4 records will post; DTL2 records will remain suspended until the election option has been processed or until the window for the employee has expired and no election was processed.

See section 7.11.00.02 for a decision tree to help you navigate through the new employee process.

Last updated: 02/01/2018