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Employees who started on or after Sept. 4, 2012, can choose the Defined Contribution (DC) Plan. Some older employees in the Basic Plan or Member Investment Plan (MIP) also chose to convert to the DC Plan in 2012.
For these employees, employers don't collect pension money. Instead, employers must make a mandatory contribution of 4.0% of their gross wages to a 401(k) account. Employers also provide a match of 100% for any money the employee saves, up to 3.0%.
If an employee has a Personal Healthcare Fund (PHF), the rules change slightly. Employers must put the first 2% of their savings into the PHF fields. Employers must match this 2% exactly. If the employee saves more than 2%, you put the rest into the DC Plan fields. You continue to match those savings until the total match reaches 3%.
Since May 2022, employees in the Basic Plan or MIP can also save money. They use the State of Michigan 457 Plan. For these specific employees, the employer doesn't provide a match. Only withhold the amount the employee chooses. These employees are deferring some of their pay so this is called Deferred Compensation.
Since Sept. 22, 2025, all MPSERS employees can also use a Roth 457 Plan. This plan uses money from their pay after you take out taxes. Only report these employee savings. Any employer money must still go into a 401(k) before taxes. Any employee money must go into a 457 account.
Voya Financial handles these plans. When an employee changes their savings, you will see a notice. Check the View DC Feedback screen in your system. The file will show an Effective Report End Date. You must update your records by that date.
Use a DTL4 record to report these wages and savings. If an employee uses a Roth account, use the specific Roth PHF or Roth DC fields on the DTL4 record.