FAQs for MPSERS 3% healthcare reimbursement (Sec. 147g)

PA 120 of 2024 appropriated $181.5M for MPSERS reporting units, except universities, to reimburse active members with the Premium Subsidy healthcare benefit for their 3% healthcare contributions in fiscal year 2025.

Yes. For now, employers must continue withholding and remitting the contributions as usual. ORS will update you about any changes to reporting as they occur.

The exact amount that each reporting unit will receive is unknown at this point. The amount allocated to each reporting unit is based on its proportion of the total required contributions by all members for the healthcare premium subsidy benefit.

It is not yet known when the funds will be provided to the schools for distribution to eligible employees. The State Aid payments were initially planned for November but will be likely delayed. ORS will update you as we know more.

The timing and frequency of the payments to reporting units is being established. ORS will update you as we know more.

There is no process or frequency prescribed in PA 120. Reporting units can determine the manner in which they reimburse employees for their 3% healthcare contributions.

There is no process or frequency prescribed in PA 120. Reporting units can determine the manner in which they reimburse employees for their 3% healthcare contributions.

PA 120 of 2024 states that this allocation is intended as reimbursement for employees with the premium subsidy healthcare benefit in fiscal year 2025. It doesn’t apply to employees who work at a university, those with the Personal Healthcare Fund, or retirees who have returned to work. Reporting units are expected to review their payroll records for a list of employees impacted. You may choose to use the Download Detail, which has a column (Column D) showing those with the 3% healthcare contribution. See the Reporting Instruction Manual Section 7.01.08: Using the Download Detail link.

Reporting units are expected to review their payroll records for a list of employees impacted. You may choose to use the Download Detail, which has a column (Column D) showing those with the 3% healthcare contribution. See the Reporting Instruction Manual Section 7.01.08: Using the Download Detail link.

Once the final Sec. 147g State Aid payment is disbursed, your reporting unit will pay out the final reimbursements to eligible employees.

PA 120 states that this allocation is intended as reimbursement for active employees with the premium subsidy healthcare in fiscal year 2025. You will reimburse employees based on the period they were actively making the 3% healthcare contributions. ORS will update you about any changes to reporting as they occur.

No, Sec. 147g reimburses members with the Premium Subsidy healthcare benefit for their 3% healthcare contributions in fiscal year 2025 only.

There is $181.5M appropriated for fiscal year 2024-25. Your RU will receive a proportionate amount of that allocation, based on the healthcare contributions collected from your RU. You will then reimburse employees with the amount received.

The 147g healthcare reimbursement is not reportable on a DTL2 record. It is reportable on a DTL4 record, but only for members who were active in FY 2025. It is not reportable on a DTL2 or a DTL4 record for members who are retired or terminated at the time of the reimbursement payment.

Yes. The initial 3% healthcare contributions made by members were excluded from gross income and therefore not taxed. Reimbursement of the 3% healthcare contributions would be considered taxable income and treated as such when the reimbursement payment is made.

At this time, PA 120 of 2024 states Sec. 147g will reimburse members with a Premium Subsidy healthcare benefit for their required 3% healthcare contribution in FY 2025. If the member 3% contribution is removed through legislation, the employer will retain the Sec. 147g funding for other post-employment benefit (OPEB) normal costs. If any legislation passes that would impact the 3% healthcare contribution, we will provide further guidance at that time.