Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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Frequently Asked Questions for reporting retirees under Public Act (PA) 184 of 2022.
Will all retiree positions be reported under the 9005 or 9025 class codes?
Yes. Report your directly hired retirees under the 9005 class code, and indirectly hired retirees under the 9025 class code.
Am I required to report a Detail 4 (DTL4) record for retired employees?
Continue to submit a DTL4 record for directly hired employees. Retired employees hired indirectly do not require a DTL4 record.
Are critical shortage hours still being monitored?
No. Critical shortage hours are no longer being monitored for retired employees.
Do critical shortage hours continue to be reported?
Yes. Hours are no longer tracked for critical shortage purposes; however, you are still required to report retiree hours or your records will suspend.
Have the reporting instructions changed for critical shortage, instructional coaches, school improvement facilitators, school renewal coaches or high impact leadership facilitators, substitute teachers, or National Service members?
Yes. There are no longer special reporting instructions for retirees returning to work under the critical shortage or as an instructional coach, school improvement facilitator, school renewal coach or high impact leadership facilitator, substitute teacher, or National Service member.
Am I required to report retirees working indirectly who retired prior to July 1, 2010?
Yes. You are required to submit records for all retirees working directly or indirectly, either through a third party or as an independent contractor. Their effective date of retirement is no longer a factor in determining if they will be reported to ORS. By answering a few questions, the Working after retirement - employer guide will give you complete reporting instructions for each of your retirees who return to work.
UNIVERSITIES ONLY: How does this impact retirees who have returned to work at a university?
A retiree may work at one of the seven universities that participates in the Michigan Public School Employees’ Retirement System immediately after retirement with no earnings limit and no effect on their pension and insurance premium subsidy if they have no previous university employment used in the calculation of their pension. They are not required to have a bona fide termination. If they earned service with one of the seven universities before 1996, they must have a bona fide termination before returning to university employment.
Can I still make an adjustment to a Detail 2 (DTL2) record that was reported with a class code other than 9005 and 9025?
Yes. Records prior to July 25, 2022 with other retiree class codes, in addition to 9005 and 9025, can still be adjusted. You can find instructions on how to adjust a DTL2 record in section 7.05.08 Adjusting wages or hours on a DTL2 record of the Reporting Instruction Manual (RIM).
Will the old versions of the Working after retirement - employer guide be available for adjustments?
Yes. The old versions of the Working after retirement – employer guide are available in the Appendix B: Previous Versions of Revised Reporting Information of the RIM.
Will my reporting unit still be responsible for paying the unfunded actuarial accrued liability (UAAL) employer contribution rate for retired employees?
No. PA 184 of 2022 no longer requires employers to pay the UAAL employer contribution rate for retired employees.
Will the core services list still exist?
No. Report your directly hired retirees under the 9005 class code, and indirectly hired retirees under the 9025 class code.
Is there a sunset date on PA 184 of 2022?
No. PA 184 of 2022 does not have a sunset date.
How does the new law affect retired employees?
A retired employee can return to work at a Michigan public school reporting unit without forfeiting their pension or complying with a limit on earnings if they meet two criteria:
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.
How can I, the reporting unit, determine if the retiree has a bona fide termination?
Ultimately, it’s the retired employee’s responsibility to ensure that they’ve met the bona fide termination requirements. In addition, it isn’t possible for you, the reporting unit, to know 100% that they’ve met the complete requirements.
Therefore, as the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website as their first point of contact to determine if they’ve met the bona fide termination requirements.
As the reporting unit you are able to determine the retired employee’s effective date of retirement when you look them up on the Member Benefit link of the Employer Reporting website. This can be used to determine if they met only a portion of the requirements.
What if the retired employee returns to work before bona fide termination requirements or the nine consecutive months of retirement?
If the retired employee returns to work, either directly or indirectly, and they don’t have a bona fide termination and/or they have not been retired nine consecutive months they will temporarily forfeit their pension and insurance premium subsidy.
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.
How will critical shortage going away affect the retired employees’ pensions?
There is no effect to the retired employees’ pensions. PA 184 of 2022 removed special provisions for retirees returning to work under the critical shortage conditions.
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.
Will current retired employees, with less than nine consecutive months of retirement, be grandfathered in?
Yes. Current retired employees will be grandfathered into the PA 184 of 2022 rules.
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.