Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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Employees who first worked for MPSERS on or after Sept. 4, 2012, may elect to remain in Pension Plus/Pension Plus 2 or to participate in the Defined Contribution (DC) plan.
Employees who elect to participate in the DC plan do not make defined benefit (DB) contributions and are considered to be qualified participants. The employee can make contributions to a 457 and receive an employer match made to a 401(k) account. Initial employee and employer contributions are shown in the table below.
|
Contribution type |
Record type |
Member contribution |
Employer contribution |
|---|---|---|---|
|
Defined Benefit |
DTL2 |
N/A |
|
|
Defined Contribution |
DTL4 |
N/A |
4.0% of gross wages |
|
Defined Contribution |
DTL4 |
3.0% of gross wages* |
3.0% of gross wages* |
|
Personal Healthcare Fund |
DTL4 |
2.0% of gross wages* |
2.0% of gross wages* |
*Once an account has been established with Voya Financial for a member in the DC plan, the member may increase or decrease the member DC contribution rate, including decreasing it to 0%. A change in the member contribution rate may result in a change to the employer contribution percentage as well. For those in the DC plan, the employer must match the employee contribution dollar for dollar, up to 3%.
When the Defined Contribution (DC) plan was introduced as part of the 2012 reform, members of Basic and MIP who met the eligibility requirements for a plan election could elect to convert to the DC plan. Effective Feb. 1, 2013, MIP members who elected to convert to the DC plan stopped making pension contributions to the Michigan Public School Employees' Retirement System. The employer makes a mandatory contribution to the employee's 401(k), and the employee can choose to make voluntary contributions to a 457 by contacting Voya, who administers the State of Michigan 401(k) and 457 Plans. Contributions for healthcare depend upon the election made by the employee.
|
Contribution type |
Record type |
Member contribution |
Employer contribution |
|---|---|---|---|
|
Defined Benefit |
DTL2 |
N/A |
|
|
Premium subsidy or Personal Healthcare Fund |
DTL2 DTL4 |
3.0% of reportable wages 2.0% of gross wages* |
2.0% of gross wages* |
|
Defined Contribution |
DTL4 |
N/A |
4.0% of gross wages |
|
Defined Contribution |
DTL4 |
3.0% of gross wages* |
3.0% of gross wages* |
* An employee with a DC Converted plan may add a member contribution, change the member Personal Healthcare Fund (PHF) contribution, or decrease their contribution to 0%. A change in the PHF member contribution amount may result in a change to the employer contribution rate as well. For all DC plan members with PHF, the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. Any member contributions over 2% are reported as DC contributions, and the employer matches that contribution 100% up to 3%.
Last updated: 06/03/2022