Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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Public Act (PA) 75 of 2010 brought changes to the retiree healthcare plan. Effective July 1, 2010, through June 30, 2011, members earning $18,000 or more were required to contribute 3% of their reportable wages into the Retiree Healthcare Fund. Members earning less than $18,000 in that school fiscal year were required to contribute 1.5% to the fund. The Retiree Healthcare Fund covers the cost of the premium subsidy benefit. The contribution is known as the Healthcare Contribution, 3% HCC, or just HCC. Member contributions to the Healthcare Fund are reported to ORS on DTL2 records as a part of the Defined Benefit (DB) contributions. Effective July 1, 2011, the HCC (premium subsidy) contribution became 3% for all members.
In 2018 the Michigan Supreme Court ruled that the 3% HCC collected between July 1, 2010 and Sept. 3, 2012, was not allowable. ORS returned these contributions to members.
On Sept. 4, 2012, PA 300 of 2012 introduced a new retiree healthcare benefit, the Personal Healthcare Fund (PHF). This benefit was mandated for all MPSERS members who first worked on Sept. 4, 2012, or after. MPSERS members who first worked before that date and met eligibility requirements were offered the option of retaining their premium subsidy benefit or electing to have the PHF benefit instead. The PHF contribution consists of a 2% member contribution to a 457 account that is matched by a 2% employer contribution to a 401(k) account.
Employees with the PHF may opt to increase or decrease their healthcare contribution percentage by contacting Voya Financial, who administers the State of Michigan 401(k) and 457 Plans. A change in the employee contribution amount may result in a change to the employer contribution percentage as well. The employer matches 100% of the member contribution up to a maximum of 2%. Member and employer contributions to the PHF are reported on a Detail 4 DC Contributions (DTL4) record. Any member contribution over 2% is considered a member DC contribution on the DTL4 record (not a PHF contribution).
For specific contribution rates for all retirement plans see the Contribution Rates (available on both the Employer Reporting homepage and the Employer Information website under Administration and Compliance.)
Last updated: 04/22/2014