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4.05: Normal salary schedule
4.05: Normal salary schedule
The Michigan Public School Employees Retirement Act requires that all compensation increases fall under an established normal salary schedule. A salary schedule is an outline of the base salary that an employee can achieve. Periodically, ORS will request your reporting unit to provide this information.
Compensation increases that fall under a normal salary schedule will be reported on the Detail 2 – Wage and Service records (DTL2) and Detail 4 – DC Contribution records (DTL4). Compensation above the normal salary schedule is not considered reportable and is not reported on the DTL2 but must still be reported on the DTL4.
See Reporting Instruction Manual (RIM) section 4.01: Compensation types: reportable, nonreportable, and special situations for more information.
The allowable salary with increases for one fiscal year becomes the base salary upon which the next year's allowable increase is calculated. Thus, any otherwise reportable compensation more than the allowable salary increases excluded in one year may be included as reportable compensation in the following year to the extent that it falls within the applicable normal salary schedule for that year.
For job classifications with fewer than three members (such as superintendents, assistant superintendents, and administrative assistants), ORS will request and review a normal salary schedule for those positions or the most nearly identical job classification in the reporting unit or similar reporting units.
Based on the Michigan Supreme Court’s June 2, 2023, order, the Normal Salary Increase (NSI) schedules described in the RIM will no longer be used to validate normal salary increases past fiscal year 2020.
See RIM section 4.05.01: Normal salary increase (NSI) schedules for K12, charter schools/PSAs, ISDs, and libraries (employment class codes 1110, 1120, and 1130) or 4.05.02: Normal salary increase (NSI) schedule for colleges and universities (employment class codes 1110, 1120, and 1130) when referencing normal salary increase schedules prior to fiscal year 2020.
Note: If employees take a pay reduction or pay freeze due to poor economic conditions, and that reduction or freeze is restored in a subsequent school year, ORS will consider the reduction or freeze when reviewing the salary schedules. ORS will require documentation of the pay reduction or pay freeze along with the contract restoring the reduced or frozen pay.
DISCLAIMER - The information provided here discusses the definition of compensation found in Public School Employees Retirement Act, Public Act (PA) 300 of 1980. However, should there be any discrepancy between this information and PA 300 of 1980, the statute governs.