10.11.01: Post-Tax Employer Payment for Service Credit Purchase by an Employer
When a reporting unit is paying for a post-tax purchase of service credit for an employee, you must submit the payment with a copy of the completed member billing statement. Please also include the employee’s name, social security number and reason for the payment and indicate that it is a post-tax payment on the check stub. See section 8.01.05: Post-tax Employer Payment for Service Credit Purchased by an Employer for further information on purchases made by a reporting unit.
If the post-tax payment is being made to pay off an existing TDP agreement these steps must be followed:
1. | The employer verifies that the employee has an existing TDP agreement. |
2. | The employee is terminating within 90 days or has a retirement application on file at ORS. |
3. | The employee completes the Payoff Payment Options for a TDP Agreement form, signs it, and gives it to the employer. The form is available at www.michigan.gov/orsschools under Forms & Publications. |
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4. | The employer submits the post-tax payment with the completed Payoff Payment Options for a TDP Agreement form. Please note: A payroll official’s signature is not required for this payment type. |
5. | This payment must be made by paper check. There will be no $50 paper check fee as this is considered as a post-tax payment made by the employee and not the employer. This payment should always be kept separate from your retirement contribution payments made online to the Contribution & TDP cash receipt type. |
Last updated: 07/16/2014