The information below is an archive related to archived Public Act (PA) 92 of 2017 (PDF, 106 KB). It's a record of information the Michigan Office of Retirement Services (ORS) provided to reporting units regarding implementation of the legislation. This page provides links to all communications from PA 92 of 2017, including publications, emails to employers, Reporting Instruction Manual (RIM) updates, and relevant communications to members and retirees.
Legislative Summary of PA 92 of 2017 (R3514C) (PDF, 138 KB )
Retirement Plan Election Process (R3636C) (PDF, 41 KB)
Archived Jan. 25, 2018, Action Required — Technology Enhancements on February 5
Archived Nov. 17, 2017, Updated Fiscal Year (FY) 2017 – 2018 Contribution Rates
Archived Sept. 29, 2017, Action Required — Timeline for upcoming reform changes
Archived Sept. 25, 2017, Final Reminder: Get Ready for FY 2017 – 2018
Archived Aug. 7, 2017, Updated FY 2017 – 2018 Employer Contribution Rates table now posted
Enhanced Contributions for Defined Contribution (DC) Participants (R3538C) (PDF, 32KB) Letter to DC Plan participants reminding them about enhanced retirement plan contributions.
Your Member Billing Statement for Service Credit Expires Sept. 29, 2017 (R3537C) (PDF, 42 KB) Letter to members who requested a member billing statement but hadn't taken action as of Sept. 8, 2017.
Option to Purchase Service Credit Ending Sept. 29, 2017 (R3517C) (PDF, 227 KB) Letter to members eligible to purchase service credit)
Archived: Option to Purchase Service Credit Ending Sept. 29, 2017 email sent July 13, 2017, at 4:56 p.m. Email to members eligible to purchase service credit.
Archived: New law has no effect on your pension and healthcare email sent on July 13, 2017, 2:15 p.m. Email sent to retirees.
Check the Employer Information website under 2017 Reform for all information and emails instructing and assisting employers with reporting changes related to the reform. The link is found directly below the Employer Reporting link on the Employer Information home page.
Archived Jan. 21, 2020
Updates to the RIM are in process. You will be notified by email when they are published, and a list of updated sections will be posted on the 2017 Reform page. A list of all recent updates to the RIM is at the bottom of the RIM home page.
Archived Aug. 7, 2017
These employees will have two retirement plan options: a modified DC Plan and a new hybrid plan called Pension Plus 2 Plan. Pension Plus 2 Plan, like the existing Pension Plus Plan, has both a pension component and a savings component. No changes were made to retiree healthcare benefits, so all new employees will have the Personal Healthcare Fund (PHF) retiree healthcare plan.
Archived Aug. 7, 2017
Employees hired after Sept. 4, 2012, who elected the DC Plan will begin receiving a new employer match — 100% match up to 3% from the employer. Employees who will first work on or after Feb. 1, 2018, will have the option to elect Pension Plus 2 Plan or the DC Plan. If the employee doesn't make an election (defaults), they'll be placed in the DC Plan.
Archived Aug. 7, 2017
The main difference is the member contribution rate, which will now be split with the employer 50/50. The member rate will be 6.2% in 2018 but could change in future years. Another difference is that an employee must elect Pension Plus 2 Plan to participate in it. If an employee doesn't make an election, they'll be enrolled in the DC Plan.
Archived Aug. 7, 2017
Retirement benefits are calculated in the same way for the Pension Plus Plan and Pension Plus 2 Plan.
Archived Aug. 7, 2017
If employees don't make an election, they'll default into the DC Plan.
Archived Aug. 7, 2017
Yes, but they must elect Pension Plus 2 Plan by logging in to miAccount within the 75-day window.
Archived Jan. 25, 2018
Check the Member Benefits Plan link on the Employer Reporting website to determine whether the person is already a member of the Michigan Public School Employees' Retirement System or is entitled to an election. On Feb. 5, 2018, the Member Benefit Plan screen will show Pension Plus 2 Plan for new employees who are entitled to an election.
Archived Jan. 25, 2018
For employees entitled to an election and their first day worked is before Feb. 1, 2018, provide the Retirement Plan Election brochure and form (R0940C) with the July 2017 revision date. If you need a copy, contact ORS_Web_Reporting@Michigan.gov.
For employees entitled to an election and their first day worked is on or after Feb. 1, 2018, no election form is required. Employees who are new to the Michigan Public School Employees' Retirement System make their election by logging in to miAccount. After they have first been reported, they'll receive in the mail instructions on how to make their election.
Archived Jan. 25, 2018
DTL2 records: For Pension Plus 2 Plan, employer and member rates will be available on the Employer Contribution Rates page and are effective Feb. 1, 2018.
DTL4 records: Changes on the DTL4 record only apply to employees who were hired on or after Sept. 4, 2012, and elected the DC Plan. For the first full pay period with a record begin date on or after Feb. 1, 2018, begin reporting employees using the Contribution Rates table effective Feb.1, 2018. The new contribution rates table reflect the changes to employer contributions for employees who elect the DC Plan.
Archived Jan. 25, 2018
Because of the system changes, the Michigan Office of Retirement Services (ORS) will treat them as employees who are entitled to a Pension Plus 2 Plan election and could potentially default to the DC Plan. Don't enter any elections. ORS will be reaching out to employers to verify first day worked and make the appropriate adjustments. You may also contact Web Reporting if you have any questions.
Archived Jan. 25, 2018
Employees will no longer submit a plan election form to you. Instead, they'll make their election by logging in to miAccount. They'll receive information on how to do so after you first report them. They'll still have 75 calendar days from the end of their first pay period end date to submit their election form.
Archived Jan. 25, 2018
Employers no longer enter elections on the Employer Reporting website.
Archived Jan. 25, 2018
Employees who first worked on or after Feb. 1, 2018, will default into the DC Plan.
Employees who first worked and were reported before Feb. 1, 2018, will default to the Pension Plus Plan. If they first worked in January but were first reported in February, contact Employer Reporting.
Archived Jan. 25, 2018
Employers will no longer submit or enter election forms for employees who are new to the Michigan Public School Employees' Retirement System.
Archived Jan. 25, 2018
In August, you received a shipment of brochures and forms with a revision date of July 2017 for use with employees new to the Michigan Public School Employees' Retirement System who were or will be first reported before Feb.1, 2018.
For employees who are new to the retirement system, you'll no longer provide the Retirement Plan Election brochure and form. In late January, you'll receive a drop-shipment of a new handout that you may choose to provide your new employees as a courtesy. Employees who are new to the retirement system will make their election through miAccount.
Archived Jan. 25, 2018
For employees new to the Michigan Public School Employees' Retirement System who will first be reported on or after Feb.1, 2018, don't provide the brochure and form. When you have distributed the older version to any employee who will first work and first be reported before Feb. 1, 2018, recycle all copies of this brochure and form./p>
Archived Jan. 25, 2018
In September 2017, ORS posted the new Contribution Rates table effective Feb. 1, 2018 – Sept. 30, 2018, on the Employer Information website. There are two contribution rate tables for fiscal year 2017 – 2018:
Archived Jan. 25, 2018
The new law required only one change to the Employer Contribution Rates table effective Oct. 1, 2017, through Jan. 31, 2018. The contribution rate for employers on the Defined Contribution (DC) Plan (the column labeled Pension Plus to DC with PHF) will go from 3% to 7%. The additional 4% is a new mandatory employer contribution. This doesn't include the 2% contribution for PHF.
Archived Jan. 25, 2018
The Contribution Rates table effective Feb. 1, 2018, has been redesigned to include employee rates along with employer rates. This rate table has a new row for the Pension Plus 2 Plan and reflects the changes to the Defined Contribution (DC) contribution rates for employees who elected the DC Plan and were hired on or after Sept. 4, 2012.
Archived Jan. 25, 2018
Beginning Feb. 1, 2018, employers will match 100% up to the first 2% to the employees' contributions to the Personal Healthcare Fund, and then 100% up to 3% of the employee’s contributions to their 457 Plan. This is in addition to the mandatory 4% employer contribution that begins Oct. 1, 2017.
Archived Aug. 7, 2017
In fiscal year 2018, employers will contribute 6.2% to the employee’s pension plan, 1% to the employee’s savings component, and 2% to the employee’s Personal Healthcare Fund. Both employer and member contribution rates may change in future years. Employer Defined Contribution Plan contributions (savings component and PHF) reflect the maximum employer match. Check the Member Benefit Plans page for more information.
Archived Jan. 25, 2018
Yes. The employer contribution rate tables will show Pension and Health UAAL rates for every member plan type except one. Retirees who return to work and are not qualified participants. UAAL rates are based on the liability of the whole system, all plans not a single plan within the system, such as Pension Plus Plan.
Archived Aug. 7, 2017
The Michigan Office of Retirement Services (ORS) plans to have system changes needed for Feb. 1, 2018, completed by the end of January. As we have more information regarding changes to the ORS system, you'll be notified by email, and the information will be posted on the 2017 reform section of the Employer Information site.
System changes for February will include the integration of the Pension Plus 2 Plan. Employees who elect the Pension Plus 2 Plan will be reported just like a Pension Plus Plan member, but with different employer and member contribution rates. Employees who first work on or after Feb. 1, 2018, will make their elections in miAccount.
Other system changes include new employer matching rates for employees who elected (hired on or after Sept. 4, 2012, and before February 1, 2018) or default to (hired on or after Feb. 1, 2018, and didn't elect Pension Plus 2 Plan) the DC Plan. Employees will now receive 100% up to 3% of the employee’s contributions. There are no changes to Personal Healthcare Fund matching contributions or reporting.
There are no changes to DTL1 or DTL3 records.
Archived Jan. 25, 2018
The New Member Election link has been replaced with the View Election Status link.
For employees who first work before Feb. 1, 2018, you'll still enter elections through this link.
For employees who first work on or after Feb. 1, 2018, you'll see two new sections — New Members Yet to Make Election and New Members Who Have Made Their Election. This page shows detail about the election process, including when employees were sent notifications, whether the employee has made an election, and if so, their retirement plan election and the date it was made. It also tracks those who default to the Defined Contributions Plan.
Archived Jan. 25, 2018
The only action you need to take on this screen is if someone elects or defaults to the Defined Contribution (DC) Plan. If an employee elects or defaults to the DC plan, check this link to determine if any DTL4 adjustments need to be made. Once adjustments (if any) are made, check the box in the DTL4 Adjustments Complete column.
Archived Jan. 25, 2018
Member Unfunded Actuarial Accrued Liability (UAAL) contributions can be found on the View Report Totals page. Select Work on Reports and then select View Totals/Accept link.
A new column on the Download Detail spreadsheet called Member UAAL Contributions.
There is no action needed for the Member UAAL Contributions. These were implemented if the situation arises that Pension Plus 2 Plan becomes underfunded. The Michigan Office of Retirement Services will communicate this if it ever occurs.
Archived Jan. 25, 2018
Once the first DTL1 and DTL4 records post for a new employee, the Michigan Office of Retirement Services (ORS) will send a welcome letter stating they have an election to make. It will direct them to miAccount and to the PickMiPlan.org website. If the employee takes no action, ORS will send another reminder letter advising them to make an election. If no action is still taken, ORS will send a final notice advising them to make an election.
The dates letters are generated are shown on the View Election Status screen.
Archived Jan. 25, 2018
The only action needed from your reporting unit is to process the appropriate DTL4 adjustments for someone who elects or defaults to the Defined Contribution Plan.
Archived Jan. 25, 2018
DTL1: No changes.
DTL2: The employer and member contribution rates for those with Pension Plus 2 Plan will be different than the rates for those who are in the original Pension Plus Plan. (If you have an employee who first worked in January, but was first reported in February, contact the Michigan Office of Retirement Services.) Use the new Contribution Rates table.
DTL3: No changes.
DTL4: For record begin dates on or after Oct. 1, 2017, begin reporting 4% mandatory contributions in the Employer DC Contribution ($) and Employer DC Match Percent (%) fields. This is in addition to any matching contributions the employee is entitled to. Review the Member Benefit Plans link to determine what percentage to report.
DTL4: For record begin dates on or after Feb. 1, 2018, the match will change for anyone who was hired on or after Sept. 4, 2012, and elected the DC Plan. The new match will include anyone who was hired on or after Feb. 1, 2018, and defaulted or elected the DC Plan. Employees will receive 100% up to 3% from the employer and should be reported on the Employer DC Contribution ($) and Employer DC Match Percent (%) fields. This is in addition to the 4% employer mandatory contributions. Review the Member Benefit Plans link to determine what percentage to report.
Archived Jan. 25, 2018
System changes for October 2017 were implemented in late September. You were notified by email and the information was posted on the 2017 reform section of the Employer Information site.
System changes for October included removing the availability for members to purchase service credit.
Also, anyone who elected the Defined Contribution (DC) Plan on or after Sept. 4, 2012, started receiving 4% mandatory employer contributions. This is calculated on the DTL4 with any record begin date on or after Oct. 1, 2017. Anyone who elected the DC Plan on or after Sept. 4, 2012, has the contribution amounts listed on the Member Benefit Plans link and on the View Feedback File link on the Employer Reporting website.
There were no changes to DTL1, DTL2, or DTL3 records.
Archived Jan. 25, 2018
PA 92 of 2017 doesn't change the benefits or requirements for receiving a pension and retiree healthcare for current retirees.
Archived Aug. 7, 2017
The new law has no impact on retiree healthcare benefit options.
Archived Aug. 7, 2017
Only service credit purchases are affected. Basic or Member Investment Plan (MIP) members who wish to buy service credit must do so by 5:00 p.m. EDT, Sept. 29, 2017. However, PA 92 of 2017 still allows members to receive credit in the following situations:
The above options can still be completed through the TDP process.
Archived Aug. 7, 2017
Direct any members with questions about service credit purchases to the Frequently Asked Questions on Service Credit – PA 92 2017 or to General rules for service credit purchases, found on the Michigan Public School Employees' Retirement System website.
Archived Aug. 7, 2017
Regular retirement age as of the beginning of the plan on Feb. 1, 2018, is set at 60 years of age with at least 10 years of service. However, the retirement age eligibility requirement could change in future years based on changes in actuarial assumptions.
Archived Aug. 7, 2017
Please read the questions and answers below to read about each of these controls and triggers.
Archived Aug. 7, 2017
The assumed rate of return on investments of the pension fund for Pension Plus 2 Plan will be 6%, compared to 7% for Pension Plus Plan. As a result, the actual investment returns are more likely to meet what was expected and planned for during development of the contribution rates. Lower than expected investment returns can lead to unfunded liability over time.
Archived Aug. 7, 2017
The pension contributions for the normal cost of Pension Plus 2 Plan will be divided 50/50 between the employer and employee. The normal cost represents the cost of pensions for active employees earning another year of service credit in the retirement system. If any future liability emerges on this plan, contributions to cover that cost will be shared 50/50 by members and employers as well. This means that member contribution rates could rise in the future to help cover costs.
Archived Aug. 7, 2017
If a liability emerges on the Pension Plus 2 Plan, that liability will be amortized using a level dollar amortization method over a 10-year period. This is a technical requirement of the law to ensure that, if unfunded liability does emerge on this plan, it's paid off within a mandated time frame.
Archived Aug. 7, 2017
Yes. PA 92 of 2017 addresses life expectancy and retirement age eligibility through the use of a 5-year experience study, a practice ORS has been already following. If an experience study shows that life expectancy has increased one full year since the last study, in other words, if people who fit the Michigan Public School Employees' Retirement System member demographics are living one year longer on average, the Retirement Board, in consultation with the actuary and the Department of Technology, Management & Budget, may raise the regular retirement age by at least one year. Regular retirement age as of the beginning of the Pension Plus 2 Plan on Feb. 1, 2018, is set at 60 years of age.
Archived Aug. 7, 2017
PA 92 of 2017 allows an exception to any potential increase in retirement age eligibility if members are within five years of regular retirement age. The board may also exempt those members who are between five and eight years of retirement. Regular retirement age as of the beginning of the plan on Feb. 1, 2018, is set at 60 years of age.
Archived Aug. 7, 2017
The Pension Plus 2 Plan could be closed to new employees if the actuarial funded ratio, calculated by ORS’ actuary, falls below 85% for two consecutive years — in other words, if the plan funds are only enough to cover 85% of the normal cost for two consecutive years. If this occurs, the legislature has 12 months to provide funds through the budget process to increase the funded ratio. If the legislature doesn't take action, employees who are new to the retirement system will no longer have the option of the Pension Plus 2 Plan and will participate in the Defined Contribution Plan.
Archived Aug. 7, 2017
Members already enrolled in Pension Plus 2 Plan will continue to accrue service credit under that plan.
Archived Aug. 7, 2017
Review the Member Benefit Plan link in Employer Self Service to determine if employees are new to the Michigan Public School Employees' Retirement System.
Archived Aug. 7, 2017
Provide employees who are new to the Michigan Public School Employees' Retirement System with the July revision of the Your Retirement Plan Election brochure and form, which you should receive in the mail by mid-August.
Archived Aug. 7, 2017
Review any new TDP agreements as soon as you receive them. Fax the signed and completed TDP agreements to the Michigan Office of Retirement Services by 5:00 p.m. EDT, Sept. 29, 2017, the deadline for eligible members to purchase service credit. To avoid the last-minute rush, fax completed agreements as soon as you have reviewed them. RIM Chapter 10 covers TDP agreements.
Archived Aug. 7, 2017
PA 92 of 2017 mandates this deadline. The Michigan Office of Retirement Services (ORS) must receive all TDP Agreements (R0392C) signed by both the member and employer by 5:00 p.m. EDT, Sept. 29, 2017. ORS won't process TDP agreements received after that time and payments will be returned appropriately.
Archived Aug. 7, 2017
Expect to receive more than the usual number of TDP agreements between now and the end of September. Be prepared to process them by the September 29 deadline. RIM Chapter 10 covers TDP agreements.
Archived Aug. 7, 2017
Direct any members with questions about service credit purchases to the Frequently Asked Questions on Service Credit – PA 92 of 2017 or to the General rules for service credit purchases pages found on the Michigan Public School Employees' Retirement System website.
Archived Aug. 7, 2017
Employees hired after Sept. 4, 2012, who elected the Defined Contribution Plan will have new contribution and employer match amounts mandated by PA 92 of 2017. The first change is the mandatory 4% employer contribution, which goes into effect for records with a begin date on or after Oct. 1, 2017.
For any record begin date before Feb. 1, 2018, the current employer match is 50% of the first 6% of the employee’s retirement savings contribution remains in place.
The change to the employer match takes effect for records with a begin date on or after Feb.1, 2018. The employer match will be 100% of the first 3% of the employee’s retirement savings.
Archived Aug. 7, 2017
For DTL2 records with a record end date on or after Oct. 1, 2017, begin reporting employees using the updated Defined Benefits Contributions section of the Employer Contribution Rates table effective Oct. 1, 2017, through Jan. 31, 2018.
For DTL4 records with a record begin date on or after Oct. 1, 2017, begin reporting employees using the updated Defined Contributions (DC) section of the Employer Contribution Rates table (effective Oct. 1, 2017, through Jan. 31, 2018).
Employees hired on or after Sept. 4, 2012, who elected the DC Plan, will now receive a mandatory 4% employer contribution.
Archived Aug. 28, 2017
No, the new law doesn't affect members who converted to the DC Plan before Sept. 4, 2012. These members already receive the mandatory 4% employer contribution. They won't receive the additional employer match, which begins Feb. 1, 2018.
Archived Aug. 7, 2017
No, the new law doesn't affect the Personal Healthcare Fund (PHF). PHF is a healthcare benefit and wasn't affected by this new law. Employees who have PHF will continue to receive a 100% match up to 2% from the employer.
Archived Aug. 7, 2017
Basic or Member Investment Plan (MIP) members who wish to buy service credit must do so by 5:00 p.m. EDT, Sept. 29, 2017. To make a purchase, a member has to submit the payment in full or submit a Tax-Deferred Payment (TDP) agreement, signed by the member and the new employer and faxed to the Michigan Office of Retirement Services by the deadline above.
Archived Aug. 7, 2017
Review any new TDP agreements as soon as you receive them. Fax the signed, completed TDP agreements to the Michigan Office of Retirement Services by 5:00 p.m. EDT, Sept. 29, 2017, the deadline for eligible members to purchase service credit. To avoid the last-minute rush, fax completed agreements as soon as you have reviewed them. RIM Chapter 10 covers TDP agreements.
Archived Aug. 7, 2017
PA 92 of 2017 mandates this deadline. Michigan Office of Retirement Services (ORS) must receive all TDP Agreements (R0392C) signed by both the member and employer by 5:00 p.m. EDT, Sept. 29, 2017. ORS won't process TDP agreements received after that time and payments will be returned appropriately.
Archived Aug. 7, 2017
PA 92 of 2017 still allows members to receive service credit in the following situations:
Archived Aug. 7, 2017
Fax any signed, completed TDP Agreement Addendum (R0625C) within five business days of receiving the completed form from the employee. Note that a member whose TDP agreement is canceled or who doesn't submit the TDP Agreement Addendum (R0625C) form to the employer within 90 calendar days of termination can't begin a new agreement, as they could before PA 92 of 2017. See RIM 10.09.01.
Archived Aug. 7, 2017
It's the employee’s responsibility to submit this form to the new employer within 90 days of termination from a previous employer, as explained in RIM 10.09.01. If the member misses that deadline, the agreement will no longer be in effect and the member won’t be able to start a new agreement as they could before PA 92 of 2017. But it’s urgent that you process submitted addendums promptly after receiving it to preserve the TDP purchase for your new employees.
Archived Aug. 7, 2017
Direct any members with questions about service credit purchases to the Frequently Asked Questions on Service Credit – PA 92 2017 or the General rules for service credit purchases pages found on the Michigan Public School Employees' Retirement System website.
Archived Aug. 7, 2017
This won't affect TDP agreements that are currently in place.
Archived Aug. 7, 2017
No. Agreements that are in place prior to Sept. 29, 2017, 5:00 p.m. don't need to be paid in full. If the member is retiring and considering paying off any service credit purchase, they'll need to do so prior to their retirement effective date.
Archived Aug. 7, 2017
