FAQs for MPSERS 3% healthcare reimbursement (Sec. 147g)

Sec. 147g is restricted State revenue, so Major Class 312, Suffix 0000. Regarding expenditure Function and Object, districts should account for the expense (reimbursement to employees) using their various Functions along with Object Code 2820 – Retirement Benefits (though some flexibility exists with other Object Codes if needed).Finally, similar to other Section 147’s, no Grant Code will be required on the revenue or expenditure side, though you’re welcome to separately track this internally using the fourth digit of the Object Code, the “Other” coding dimension, etc. See the February 2025 State Aid Update for more guidance on Object Code flexibility and other information.

The Sec. 147g healthcare reimbursement is not reportable on a Detail 2 – Wage and Service (DTL2) record but is reportable on a Detail 4 – DC Contributions (DTL4) record, with a few exceptions:

• For members who were hired directly, retired during FY 2025, returned to work and receive the payment after retiring — report on DTL2 and DTL4 records. See the Working after retirement - employer guide.
• For members who were hired indirectly, retired in FY 2025, returned to work, and receive the payment after retiring — report on a DTL2 record only. See the Working after retirement - employer guide.
• For members who terminated employment in FY 2025 or are deceased at the time of payment — do not report on either a DTL2 or DTL4 record. See RIM sections 7.04.02: Reporting a terminated employee on a DTL4 record and 13.04: Detail 4 records - DC record type codes and status change reason codes.