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PA 147 of 2023 FAQ
Frequently Asked Questions for reporting retirees under Public Act (PA) 147 of 2023
PA 147 of 2023 went into effect on Oct. 10, 2023. The new law changes several working after retirement rules that were established with PA 184 of 2022.
Will all retiree positions still 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 retired employees. Retired employees hired indirectly do not require a DTL4 record.
Is there a sunset date on PA 147 of 2023?
Yes. PA 147 of 2023 is in effect until Oct. 10, 2028.
I received an email from ORS asking me to verify the position of a retired employee. Why do I need to supply this information, and why is there a due date for my response?
PA 147 of 2023 has specific requirements for retirees who were superintendents when they retired. ORS has identified the employee listed in the email as a former superintendent who has been retired for less than six consecutive months. When you send this information to ORS_Web_Reporting@Michigan.gov, we can evaluate whether the retiree is in compliance with PA 147 of 2023. Your response must be timely because the pension decision must be timely. If a retiree receives a pension payment in error because the noncompliance was not identified timely, the retiree must pay it back to ORS. The retiree faces potential hardship, and the reporting unit and ORS have extra work that could have been avoided.
Should I continue to use the current Working after retirement — employer guide?
You can continue to use the current guide for all records dated after July 25, 2022. For adjustments to records dated before that date, use the old version of the Working after retirement — employer guides found in the Reporting Instruction Manual's Appendix B, section B.07.
How does the new law affect retired employees?
The most complete information about the impact on retirees and employees considering working after retirement is provided on the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website. You and your employees can review the information there, but it does not impact reporting.
To retire, a retiree must have a bona fide termination of employment. What is a bona fide termination?
A bona fide termination of employment means that there is a complete severing of the employer-employee relationship. A retiree cannot work in a Michigan public school reporting unit during the month of their retirement effective date, even as a volunteer. The retiree cannot have a promise of reemployment or a contract for future employment in place to work for a Michigan public school reporting unit before they terminate employment and begin collecting a 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 with certainty that they’ve met the complete requirements.
Therefore, as the employer, you can 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 can see the retired employee’s effective date of retirement on the Member Benefit link of the Employer Reporting website. You can use this date to determine whether they have been retired at least one month, but this is only one part of the requirements for a bona fide termination.
What if the retired employee returns to work before they have been retired for six consecutive months?
Report the retiree as you would any retiree. A retired employee with a bona fide termination may return to work, either directly or indirectly, with no effect on their pension or insurance premium subsidy unless or until they have earned $15,100 in the current calendar year. If they exceed that amount in the current calendar year, they temporarily forfeit their pension and insurance premium subsidy.
As the employer, refer retired employees to the Working After You Retire page on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension and insurance premium subsidy.
Will current retired employees, with less than six consecutive months of retirement, be grandfathered in?
Refer retired employees 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 and insurance premium subsidy.
A retired employee has stopped working for our reporting unit because their retirement benefits were forfeited until they stopped working. They told me I need to verify their date of termination with ORS. How should I do that?
If you are asked to verify a retiree’s date of termination, send a letter stating the retiree’s name and date of termination to:
Michigan Office of Retirement Services
PO Box 30171
Lansing, MI 48909-7671