A.14 PA 464 Reporting Critical Shortage Retiree Wages 12/27/2012 - 07/01/2014 (formerly 7.20.03)

Marked obsolete 07/01/2018

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.

Critical Shortage Wages for Retirees Who Are Not Qualified Participants 

• For wages earned between December 27, 2012 and July 1, 2014
• Does not apply to Community Colleges, Universities, or District Libraries

Wages for positions that appear on the Critical Shortage list (provided by the State Superintendent of the Michigan Department of Education) for non-qualified participant retirees (MIP or Basic members prior to retirement) who retired on any effective date, who have been retired for 12 months or more and are hired directly by the reporting unit, are reported using class codes 9013, 9014 or 9015 for the period of December 27, 2012 through July 1, 2014 or until the employee is no longer eligible to be reported in a critical shortage  position. 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, using the Contributions & TDP receipt type. No DTL4 record is required. See example of DTL2 record below.
 
Example: Don Martin

• Former Basic employee
• Retired 07/01/2009
• Hired directly by the reporting unit in an administrative position on the Critical Shortage list

On the DTL2 record use wage code 07  - Retiree wages and class code 9014 - Critical Shortage Retiree Admin.

Critical Shortage Wages for Qualified Participant Retirees

• For wages earned between December 27, 2012 and July 1, 2014
• Does not apply to Community Colleges, Universities, or District Libraries

Wages for positions that appear on the Critical Shortage list (provided by the State Superintendent of the Michigan Department of Education) 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 any effective date, who have been retired for 12 months or more and are hired directly by the reporting unit, are reported using class codes 9013, 9014 or 9015 for the period of December 27, 2012 through July 1, 2014 or until the employee is no longer eligible to be reported in a critical shortage  position. 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 earnings. 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: Nancy Jones

• Converted from Basic to DC with PHF prior to retirement
• Retired effective 03/01/2013
• Hired directly by the reporting unit in an administrative position on the Critical Shortage list

Both a DTL2 record and a DTL4 record are required. On the DTL2 record use wage code 07  - Retiree wages and class code 9014 - Critical Shortage Retiree Admin.

Last updated: 07/01/2018