Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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The Michigan Public School Employees' Retirement System (MPSERS) consists of several different benefit plan types. A MPSERS member's benefit plan is based on the first date the employee was eligible to become a MPSERS member and/or on any benefit plan election made by the member as a result of the changes to Public Act 300 of 1980 in 2012. Your employees participate in either the Basic plan, the Member Investment Plan (MIP), the Pension Plus plan, Pension Plus 2 plan, or the Defined Contribution (DC) plan. Some members are now in the DC plan but converted from the Basic or MIP plan, and their contribution rates may differ from others in the DC plan.
The MPSERS retirement plan is funded by employer contributions, employee contributions, payments made for the purchase of service credit, and the investment earnings on these dollars. Pension and healthcare (defined benefit) contribution rates are determined annually by an actuary who reviews the health and funding status of the pension trust fund and the retiree healthcare fund.
The contributions to be remitted to ORS are based on the benefit plan type, so it is crucial that reporting units know a member's benefit plan and use the appropriate rates for each member when they report and pay contributions. For instructions on how to determine a member's benefit plan, see section 7.06.01: Determining a member's benefit plan How to determine a member's benefit plan.
Member and employer contributions are tax-deferred under Section 414(h)(2) of the Internal Revenue Code. These contributions are reported using Detail 2 - Wage and Contribution (DTL2) and Detail 4 - DC Contribution (DTL4) records in the fields designated for Member Contributions, Employee Contributions, and Employer Contributions.
For instructions on how to report member contributions see section 7.02.02: Reporting DB wages, hours, and contributions on a DTL2 record How to report contributions.
Contribution Rates for all retirement plans are available on both the Employer Reporting homepage and the Employer Information website under Administration and Compliance. Contribution rates change each state fiscal year (Oct. 1), so ensure that you are using the rates for the current state fiscal year. Universities have their own employer contribution rates, so ensure that you are using the rate table for your type of reporting unit.
Last updated: 02/01/2018