7.20.00: How to Report Retiree Wages
Report retirees using a Detail 2 (DTL2) record and/or a Detail 4 (DTL4) record.
Detail 2 – Wage and Contribution Record
Retiree wages, hours, and employer Unfunded Actuarial Accrued Liability (UAAL) contributions (if required) are reported on a DTL2 record. See section 7.20.01: How to Report Retirees on a Detail 2 (DTL2).
Detail 4 – DC Contribution Record
Employee and/or employer contributions to the Defined Contribution plan for Pension Plus, Pension Plus 2, Defined Contribution (DC) plan, Personal Healthcare Fund (PHF) and Deferred Compensation Option are reported to ORS on a DTL4 – DC Contribution record. For more information, see section 7.20.02: How to Report Retirees on a Detail 4 (DTL4) and section 7.21.01: How to Report DC Contributions on a Detail 4 Record.
To ensure accuracy in reporting retirees, ORS offers tools to help you report retirees employed by your reporting unit. For accurate reporting, you must review both tools for each retiree.
- The Member Benefit Plans section of the Reporting Website will verify that your new employee is a MPSERS retiree. In addition, the Member Benefit Plans link gives you a retirement effective date, benefit and health care plan prior to retirement, availability of critical shortage service credit hours and information on employer and employee contribution rates when appropriate. This information will be specific to each employee and is needed when using the Working After Retirement – Employer Guide (see below).
- The Working After Retirement - Employer Guide verifies the ORS Employment Class Code, if UAAL is due, and if a Detail 4 (DTL4) record is required.
Reporting retiree’s hourly wages
For retirees who return to work on an hourly basis, report the hours and gross earnings on your retirement detail report according to your payroll calendar on which it was paid, not earned. See section 9.01 Earnings of Retirees Who Return to Work for the rules on reporting retiree earnings.
Reporting retiree’s with a contract
You must always pay according to your payroll calendar, even if your reporting unit arranges a contract with a retiree and chooses to pay that person a predetermined amount for the year. Your reporting unit can pay retirees over 26 pay periods if it chooses, but you must report the wages in the actual pay periods they are paid.
A reporting unit negotiates a contract with a retiree for $13,000 in total compensation for working 2 hours a day at $25/hour.
- $25/hourly rate
- 2 Hours a day ($50/a day rate)
- 10 Business days a pay period
- 26 pay periods.
50 x 10 = 500 x 26 pay periods = $13,000
On your Detail 2 (DTL2) record report 20 hours and $500 gross earnings for each pay period throughout the payroll calendar. You must not change the hours or wages into pay periods inconsistent with payroll calendar reporting.
If a retiree works in more than one position, you may combine all wages and hours onto one DTL2 record under one employment class code as long as the class code is valid for the wages being reported. If the positions have different pay rates you should use additional DTL2 records using a different, valid retiree class code on each record.
Wage codes 07, 75 and 76 are the only wage codes that can be used to report wages with a retiree class code. You must always:
- Use wage code 07 – Retiree Wages to report regular retiree wages and hours.
- Use wage code 75 – Retiree Wages Positive Adjustment for positive adjustments.
- Use wage code 76 – Retiree Wages Negative Adjustments for negative adjustments.
For more information on wage codes, see section 13.03: Detail 2 Wage Codes.
Employment Class Codes and UAAL requirements
To determine the appropriate Employment Class Code or if UAAL is due, follow instructions on the Working After Retirement - Employer Guide. For more information on class codes, see section 13.01: Detail 2 Employment Class Codes and Definitions for the full list.