Action Required - Technology Enhancements on February 5
Michigan Office of Retirement Services sent this bulletin at 01/25/2018 08:32 PM EST
January 25, 2018
When you log into the Employer Reporting website on February 5, 2018, you will notice the following technology enhancements:
Action required - Employer DC match change goes into effect
Beginning February 1, 2018 the employer Defined Contribution (DC) match for DC plan participants will be changed from 50% of the employees’ DC contribution up to a 3% maximum, to 100% of the employees’ DC contribution up to a 3% maximum.
There are no changes to the mandatory 4% employer contribution that began in October, 2017.
On Monday, February 5, open your View DC Feedback file, find a list of every one of your employees, both terminated and active, who elected the Defined Contribution (DC) plan, and were first hired on or after September 4, 2012. Update your payroll system to reflect the employer DC match percentage changes that will be effective on the payroll report listed in the Effective Report End Date column on the feedback file.
Update your payroll system to reflect the mandatory 3 percent employer match based on the report effective date on the feedback file.
Information is available on the Retirement Plan Election Process
Check out the summary, Retirement Plan Election Process (R3636C), on the retirement plan election process; how it changed and how it will stay the same.
In addition, take a moment to review the updated How to Report New Employees e-learning module. This module give you the opportunity to take a peek at the new View Election Status page on the Employer Reporting website which becomes available on February 5.
New to MPSERS Employees will automatically be put into Pension Plus 2
On any payroll report with a begin date on or after February 1, 2018; all new to MPSERS employees will be automatically be put into the Pension Plus 2 plan.
What if they first worked before February 1?
- The Office of Retirement Services (ORS) will reach out to each reporting unit by telephone to verify the first day worked of these employees.
- ORS will put them in the correct retirement benefit structure.
- If the employee first worked before February 1, you will still administer the election process. Use the new View Election Status link on the Employer Reporting website to submit the employee’s retirement plan election.
What if they truly should be reported as Pension Plus 2 plan?
During the verification call from ORS, if it’s determined that the new employee should be reported as Pension Plus 2, the new to MPSERS employee will have to make their retirement plan election in miAccount.
Other technology enhancements
The following enhancements will be seen on February 5, but not yet populated.
- A new column on the Download Detail spreadsheet titled Member UAAL Contributions.
- Member UAAL Contributions can be found on the View Report Totals Click Work on Reports and then on the View Totals/Accept link.