6.03.05: State of Michigan 457 Plan for DB members

6.03.05: State of Michigan 457 Plan for DB members

Starting in May 2022, those with a benefit plan of Basic or MIP and with the Premium Subsidy healthcare benefit, including retirees who return to work, will be able to enroll in the State of Michigan 457 Plan.

The 457 plan gives members who don't have the Defined Contribution (DC) plan, Personal Healthcare Fund, Pension Plus, or Pension Plus 2 plan the opportunity to defer compensation to a savings plan. The 457 plan does not allow or require employer mandatory or employer match contributions. This plan is different from plans with a defined contribution component (including the Personal Healthcare Fund and the savings component of the Pension Plus plan and the Pension Plus 2 plan), which provide employees the benefit of employer mandatory and/or matching contributions to the State of Michigan 401(k) Plan in addition to the opportunity to invest in the State of Michigan 457 Plan.

Starting in May 2022, eligible members will receive an informational letter from ORS and a PIN from Voya Financial, who administers the plan. Members can use the PIN to log in to their Voya account and set up their deferred compensation.

If a reporting unit has signed up for this option and an employee from that reporting unit enrolls in the deferred compensation option through Voya, the reporting unit will be notified of the employee's enrollment through the View DC Feedback screen. See section 7.04.01: View DC Feedback File. Report an employee's deferred compensation option contributions using a DTL4 record. See section 7.02.04: Reporting DC wages and contributions on a DTL4 record.

Remit payment for deferred compensation option contributions using the DC Contributions receipt type.

Last updated: 10/19/2021