The Michigan Public School Employees’ Retirement System has changed several times since 2010. These changes added the Defined Contribution (DC) Plan to the traditional Defined Benefit (DB) plans. A DC Plan is like a 401(k) where your money grows based on investments. A DB Plan gives you a set monthly payment when you retire. Since May 2022, both DTL2 and DTL4 records must be sent for all employees.
Rules for these plans depend on when a member first started working:
You must take money out of employee's pay starting on their first day. You calculate these amounts using gross wages. Gross wages include most pay on a W-2 form. They don't include workers' compensation or disability pay.
Employees can change their savings rate through Voya Financial. If an employee changes their rate, the employer match might also change. For employees with a PHF, the first 2% of their savings must go to fund healthcare. The employer must match that 2% exactly. You must report these amounts in the PHF fields on the DTL4 record.
If a member saves more than 2%, put the extra amount in the DC fields. Employers match these extra funds at 50%. This match goes up to 1% for Pension Plus Plan and 3% for DC Plans. You must report DC fields even if a member saves 0%.
