1. ORS PSRU
  2. Reporting Resources
  3. Reporting Instruction Manual
  4. 10: Tax-Deferred Payment Plan

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.
 
  Payoff Payment Option for TDP Agreement - after-tax payment option Employee signature line on Payoff Payment Options form
 
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