7.21.05.00: How to Adjust DC Contributions on a DTL4 Record

There will be instances when you will need to make adjustments to posted DTL4 records for one of the following scenarios below. Make adjustments to prior pay periods on your most current unposted payroll report with an end date later than the end date of the records to be adjusted.  Any employer and employee contribution payment required as a result of a positive adjustment record is due on the same date as payment for the report on which the adjustment appears.

Normal DTL4 Adjustments

You either underreported or overreported wages for an employee in a Defined Contribution (DC) benefit plan and need to adjust not only the DTL2 record for wages but also the DTL4 record for contribution amounts based on a new wage total. Or, you entered an incorrect dollar amount for a DC member or employer contribution amount on a DTL4 record and must correct that oversight. For instructions on how to make a positive or negative adjustment in these instances see section 7.21.05.01: Adjusting DC Contributions on a DTL4 Record.

Adjustments for MPSERS members after February 1, 2018

Employees who first work on or after February 1, 2018 must be reported initially as members of the Pension Plus 2 plan with Personal Healthcare Fund (PHF). They have 75 days to elect either Pension Plus 2 with PHF or the Defined Contribution plan with PHF. If no election is made within the allotted 75 days, the employee becomes a participant in the DC plan with PHF. Enter adjustment DTL4 records for employees who become participants in the DC plan.

Correcting Unposted DTL4 records for new-to-MPSERS employees

Because DC plan contribution rates are higher than the Pension Plus 2 rates, if the employee elects the Defined Contribution plan, DTL4 records must show the correct contribution amounts back to the first reported wages for the employee. Any DTL4 records that have not yet posted can be corrected prior to posting to show employee and employer contributions at the DC plan rates.

Adjusting Posted DTL4 records for new-to-MPSERS employees

DTL4 records that have already posted to the employee’s DC and or PHF account with the rates for the Pension Plus 2 with Personal Healthcare Fund plan will need to be adjusted. Positive adjustments must be made to all prior posted DTL4 records to make the contributions whole towards the DC savings plan. For instructions on how to make positive adjustments for these employees see section 7.21.05.03: Adjusting Posted DTL4 Records for Employees Who Elect the DC Plan.

Adjustments for MPSERS members between September 4, 2012 and January 31, 2018

An employee who first worked between September 4, 2012 and January 31, 2018 may elect to opt out of the Pension Plus benefit plan and become a participant in the Defined Contribution plan instead. ORS requires that an employee who first works between September 4, 2012 and January 31, 2017 be initially reported to ORS as a member of the Pension Plus plan with Personal Healthcare Fund (PHF), reporting the lower contribution rates in place for Pension Plus (a total of 4% member and 3% employer). The mandatory member contributions for the DC plan must be a total of 8% of gross wages for the member defined contribution savings portion (6% DC contribution and 2% PHF) with a 5% employer match (3% DC contribution and 2% PHF). DTL1 records (demographics) and DTL4 records (DC contributions) at the Pension Plus rates will post soon after the employee is reported. The employee has 75 days to opt out of the Pension Plus plan and elect the DC plan instead.

Do not adjust DTL2 records for employees who are new to MPSERS

There is no need to adjust DTL2 records for a new-to-MPSERS employee who first works on or after February 1, 2018 and who becomes a participant in the DC plan. DTL2 records remain suspended until the employee’s ORS account information has been updated to reflect the DC plan election. The DTL2 records will go through the batch edit/validation process after the account has been updated, and the employee and employer contributions will be recalculated by ORS at the correct DC rates. The correct amounts will be posted to the employee’s account at ORS when the DTL2 record posts. You may have to make some internal corrections at your reporting unit to make your employee's account whole, but no corrections are needed for the employee and employer contribution amounts on a DTL2 record for ORS.

Last updated: 03/05/2018