Bonus payments
Cash in lieu of an excluded benefit
Compensation for board members
Compensation in excess of the annual IRS limit
Compensation in excess of the normal salary schedule
Early retirement incentives
FICA reimbursement
Fringe benefits
In-kind compensation
Insurance premium payments
Long-term disability wages
Military leave pay
Payments to increase retirement benefits
Perfect attendance pay
Reimbursements of member pension contributions
Reimbursements and allowances
Retroactive wages (contract settlement)
Sabbatical leave pay
Service credit purchases made by reporting units
Termination or severance pay
Unused sick leave, vacation, or annual leave pay
Wages received before services are performed
See also section 4.04: Special situations for compensation types that might be nonreportable under some circumstances.
Please note: Reportable and nonreportable compensation is defined in MCL 38.1303a and only applies to active MPSERS members. For information on reporting earnings for retirees see section 9.01: Earnings of retirees who return to work.
Last updated: 04/13/2022
Any type of payment made in lieu of an excluded benefit is nonreportable on a DTL2 record. For example, if a member receives payment instead of or in place of insurance premiums, that payment is nonreportable. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Compensation for service as a reporting unit board member is not considered remuneration for services performed as a public school employee and is nonreportable on both DTL2 and DTL4 records.
Last updated: 11/04/2020
In section 401(a)(17) of the Internal Revenue Code, the IRS imposes a calendar-year limit on reportable compensation for certain types of retirement plans, including those administered by ORS. The limit applies to employees who became members of this retirement system after Oct. 1, 1996. Compensation that exceeds this limit is nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record. ORS will provide updated figures here each year.
IRS annual limits to reportable compensation| Calendar year | Limit |
| 2025 | $350,000 |
| 2024 | $345,000 |
| 2023 | $330,000 |
| 2022 | $305,000 |
| 2021 | $290,000 |
Last updated: 12/23/2024
As provided under section 3a (subsection 3f) of the Public School Employees Retirement Act (MCL 38.1303a), only compensation increases that fall within a normal salary schedule are reportable for retirement purposes.
Annual increases in compensation for a particular employment class are reportable up to the allowable salary increase for that position for a given year. Compensation above the allowable salary increase (as determined by the salary schedule for the position) may not be reportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
This topic is explained in greater detail in section 4.05: Understanding allowable salary increases and salary schedules.
Last updated: 12/12/2024
Early retirement incentive payments are nonreportable on a DTL2 record, regardless of whether paid in a lump sum or paid over a period of time for active members. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Payment of an amount equal to FICA contributions is nonreportable compensation on both the DTL2 and DTL4 records.
Last updated: 02/10/2017
Last updated: 02/10/2017
Effective Jan. 1, 2000, remuneration not paid in money (in-kind compensation) is not reportable on a DTL2 record. In March 1997 the retirement board adopted this policy, which says, "As of January 1, 2000, if part of a member's remuneration is not paid in money, such remuneration shall not be considered compensation reportable to the retirement system (ORS) unless specifically provided for in statute." This compensation is considered part of gross earnings and should be reported on a DTL4 record
Last updated: 02/10/2017
Insurance premium payments are nonreportable on a DTL2 record. This includes, but is not limited to, hospitalization insurance, life insurance, and cash in lieu of insurance premiums paid by a reporting unit. Cash in lieu of insurance premium payments is also nonreportable. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Long-term disability (LTD) wages, as defined by your reporting unit, is nonreportable on both the DTL2 and DTL4 records. No portion of LTD wages should be reported to ORS.
Last updated: 02/01/2018
Wages paid by the U.S. government and differential wages paid by the reporting unit to employees while on active duty military leave are nonreportable on a DTL2 record. The member may be eligible to purchase the military leave service at a later date. For more information see Active Duty Military Service on the member website.
Wages paid by the U.S. government are nonreportable on DTL4 records, but differential wages paid by the reporting unit to employees while on active duty are reportable on DTL4 records.
Last updated: 02/10/2017
Any payments made for the specific purpose of increasing the final average compensation in the pension formula are nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
While attaining perfect attendance is an objective, it is not associated with performing additional service or measurable duties specifically related to the achievement of a particular goal. Employees are compensated to work and perform services each day. Therefore, receiving a perfect attendance payment in addition to regular pay, when no additional duties or services have been performed, is consistent with the definition of a bonus payment. Neither bonus payments nor perfect attendance pay are reportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Last updated: 10/18/2024
Last updated: 02/10/2017
Retroactive wages are wages paid retroactively to a group of employees as the result of a contract settlement. ORS no longer expects retroactive pay adjustments for contracts settled after June 8, 2011, as a result of Public Act 54 of 2011, which prohibits the payment of retroactive wages for labor contracts that have expired.
For unexpired contracts settled before June 8, 2011, retroactive wages were reportable. The section describing reportable retroactive wages in more detail is archived in section A.23. If a member's account needs positive or negative adjustments for retroactive wages earned before that date, see section 7.05.07: Adjusting DTL2 records - overview.
Last updated: 02/10/2017
Wages paid while on sabbatical leave are nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 09/29/2017
Money the reporting unit uses to purchase service credit on behalf of an employee is nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Any payments made specifically because an employee is terminating employment are nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
If sick leave, annual leave, or vacation pay is earned but not used before the employee terminates or retires, the employer may pay the employee for the unused leave or vacation. Any payments for unused sick leave, vacation, or annual leave are nonreportable on a DTL2 record. This compensation is considered part of gross earnings and should be reported on a DTL4 record.
Last updated: 02/10/2017
Any payments paid before a new employee has performed a direct service to the reporting unit are considered nonreportable on both the DTL2 and DTL4 records.
For example, the school’s compensation contract starts in August, but the first day of the school year is September 1. A new employee will be eligible for reportable wages only from the first day of actual work on September 1 moving forward.
Last updated: 11/14/2023
