A.13 PA 464 Reporting Retiree Substitute Teachers (formerly 7.20.04)

Marked obsolete 02/01/2018

OBSOLETE section - ORS offers tools to help you report retirees employed by your reporting unit. For accurate reporting, you must review both tools for each retiree.

• The Member Benefit Plans section of the Reporting Website will verify that your new employee is a MPSERS retiree. In addition, the Member Benefit Plans link gives you the retirement effective date, years available in a critical shortage position, and information on employer and employee contribution rates when appropriate. This information will be specific to each employee.
• The Working After Retirement - Employer Guide verifies the ORS Employment Class Code, if UAAL is due, and if a Detail 4 record is required.

For that reason, this section no longer applies.

Substitute Teachers - Basic or MIP Plan Retirees - Direct Hire

• For wages earned during the period of December 27, 2012 - July 1, 2014
• Does not apply to Community Colleges or Universities

Wages for non-qualified participant retirees (MIP or Basic members prior to retirement) who retired on or after July 1, 2010, who have been retired for 1 month or more and are hired directly by the reporting unit as substitute teachers are reported using class code 9033, 9034 or 9035 for the period of December 27, 2012 through July 1, 2014. See the Employer Action Guide for the appropriate class code.

The employer is required to report Unfunded Actuarial Accrued Liability (UAAL) contributions on the gross wages; there are no employee contributions. Report wages, hours and UAAL contributions on a DTL2 record. Online payment of UAAL contributions is made to the Contributions & TDP receipt type. No DTL4 record is required. See example of DTL2 record below.
 
Example: Betsy Moore

• Former MIP member
• Retired effective 07/01/2010
• Hired directly by the reporting unit, working after retirement as a substitute teacher

A DTL2 record is required using wage code 07 - Retiree Wages and class code 9033 - Non-CS/Direct Hire Retiree (Teacher).

Substitute Teachers - Qualified Participant Retiree - Direct Hire

• Effective December 27, 2012
• Does not apply to Community Colleges or Universities

Wages for qualified participant retirees (retirees who converted to Defined Contribution (DC) and /or elected Personal Healthcare Fund (PHF) prior to retirement or retired employees who first worked for a reporting unit on or after July 1, 2010) who retired on or after July 1, 2010, who have been retired for 1 month or more and are hired directly by the reporting unit as substitute teachers, are reported using class code 9033, 9034 or 9035 beginning December 27, 2012. See the Employer Action Guide for the appropriate class code.
 
The employer is required to report employer Unfunded Actuarial Accrued Liability (UAAL) contributions and any employer and/or employee DC/PHF contributions* on the gross wages. Report wages, hours and UAAL contributions on a DTL2 record. Online payment of UAAL contributions is made to the Contributions & TDP receipt type. Report employer and/or employee DC/PHF contributions on a DTL4 record. Online payment of DC/PHF contributions is made to the DC Contributions receipt type. See examples of the DTL2 and DTL4 records below.
 
*Begin withholding member contributions at the default rate. DC/PHF member rate can be changed by the employee through the third party administrator; the reporting unit will be notified of any changes through the DC Feedback File link on the Employer Reporting website.
 
Example: John Smith

• Elected to convert to DC and PHF prior to retirement
• Retired effective 07/01/2013
• Hired directly by the reporting unit as non-Critical Shortage substitute teacher.

Both a DTL2 record and a DTL4 record are required.

The DTL2 record uses wage code 07 - Retiree Wages and class code 9033 - Non CS/Direct Hire Retiree (Teacher)

Substitute Teachers - Qualified Participant or non-Qualified Participant Retirees - Hired through Third Party or as Independent Contractors

• For wages earned during the period of December 27, 2012 - July 1, 2014
• Does not apply to Community Colleges or Universities 

Wages reported for non-qualified participant and qualified participant retirees hired as substitute teachers through a third party or as independent contractors who retired on or after July 1, 2010, and who have been retired for one month or more are reported using class codes 9023, 0924 and 9025 for the period of December 27, 2010 through July 1, 2014. See the Employer Action Guide for the appropriate code.
 
The employer is required to report employer Unfunded Actuarial Accrued Liability (UAAL) contributions on the gross wages; there are no member contributions required. Wages, hours and UAAL contributions are reported on a DTL2 record, using the Contributions & TDP receipt type. There is no DTL4 record required. See the example of the DTL2 record below.
 
Example: Sam Cook

• Former MIP member
• Retired effective 8/1/2011
• Hired through a third party contractor as a substitute teacher

The DTL2 record uses wage code 07 - Retiree wages and class code 9023 - 3rd Party Retiree (Teacher).

Last updated: 07/01/2018