Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Employer Contributions Forfeiture Credit
Charters and Public School Academies
Search is currently unavailable. Please try again later.
The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
In accordance with the IRS private letter ruling, tax-deferred payments to purchase service credit are considered employer payments and are tax-deferred as long as the contributions are withheld and forwarded to ORS before the member receives them. (Section 414(h) (2) of the Internal Revenue Code.) See section 10.02.04: Proper sequence of TDP and other deductions.
Tax-deferred payments are credited to members' accounts as service credit purchased and are refundable upon request at termination of employment if that member is not eligible to receive a monthly pension.
Last updated: 04/13/2012