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Changes to Michigan Public School Employees Retirement System (MPSERS)

Changes to Michigan Public School Employees Retirement System (MPSERS). Ellen Horsch September 2012. PURPOSE OF FORUMS. To give a brief overview of the changes in MPSERS due to the passage of SB 1040 and what it means to Michigan Tech employees in MPSERS. Notice and Disclaimer .

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Changes to Michigan Public School Employees Retirement System (MPSERS)

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  1. Changes to Michigan Public School Employees Retirement System (MPSERS) Ellen Horsch September 2012

  2. PURPOSE OF FORUMS To give a brief overview of the changes in MPSERS due to the passage of SB 1040 and what it means to Michigan Tech employees in MPSERS.

  3. Notice and Disclaimer • The information being provided to you is based on the University's general understanding of the State of Michigan Retirement Program. We are trying to be as accurate as possible without making binding representations regarding any MPSERS program. Each person's situation is unique and retirement is an important decision. Since Michigan Tech is not in a position to provide financial planning or other advice regarding your decision, we urge you to access your account to learn more by visiting http://www.michigan.gov/orsschools before making your final decision.

  4. Agenda for Today • Updates • Senate Bill 1040 • Navigate through the ORS website - Login to miAccount - Reform Tools

  5. Agenda for Today (cont.) • My Reform Options – Making the elections - Step 1 – Review Retiree Healthcare Option - Step 2 – Review Pension Plan Options - Step 3 – Elections - Step 4 - Confirmation

  6. Agenda for Today (cont.) • Registering for miAccount • Human Resources will Help! • Helpful Websites • Questions

  7. 1. 3% Retiree Healthcare Contribution UPDATES! Employers are to continue withholding the 3% contribution.

  8. 2. Temporary Court Order May Affect Deadline for Retirement Reform Elections • Two temporary restraining orders. • The window remains open until the courts take action. • If found to be unconstitutional, members will be allowed to rescind or change their elections. • If found constitutional, the deadline for making choices may remain as early as October 26.

  9. SB 1040 affects your Retirement Plan.

  10. There are healthcare elections for all MPSERS members. . .

  11. and pension elections for MPSERS members hired before July 1, 2010.

  12. Retiree Healthcare Election Two Options: 1. Premium Subsidy – continue to contribute towards Retiree Healthcare to keep healthcare insurance premium subsidy. 2. Personal Healthcare Fund – establishes a portable, tax deferred fund.

  13. Retiree Healthcare Election Default is Option 1 - Premium Subsidy

  14. Pension Plan Election (Goes into effect 12/01/12) Four Options: 1. Increase contribution to retain 1.5 percent pension factor and continue contributions until you terminate. 2. Increase contribution to retain 1.5 percent pension factor until you reach 30 years then goes to 1.25 without contributions until you terminate.

  15. Pension Plan Election (cont.) 3. No increase in contribution rate. 1.5 percent pension factor for years already served; 1.25 percent pension factor for future years. • Switch to defined contribution plan and receive a 4% employer contribution to a tax-deferred like a 401(k) account and contribute up to the maximum amount permitted to your 457 account.

  16. Pension Plan Election (cont.) Default is Option 3 - No increase in contribution rate, 1.25 percent pension factor for future years.

  17. Pension Plan Election (cont.) Election period is September 4, 2012 and closes Friday, October 26, 2012 at 5 pm (EST).

  18. Navigating Through the Office of Retirement Services (ORS) Website Go to ORS website at http://www.michigan.gov/ors/ and click on left side “Public School Employees Retirement System.”

  19. Login to miAccount (if you have an account) by clicking miAccount tab on the right of the page or go to: • https://ssprd.state.mi.us/wss/security/login.do?method=showLogin&retirementSystemId=1030

  20. Step 3 – Electing your options Step 4 – Confirmation

  21. ORS is offering the “Access miAccount Program!” Will pay the University based on the number of employees who use miAccount.

  22. MPSERS MEMBER IDs WERE SENT IN A LETTER THROUGH THE MAIL

  23. Human Resources Will Help! A schedule will be sent giving the dates/times you can receive help in making your elections.

  24. Frequently Asked Questions http://www.michigan.gov/orsschools/0,4653,7-206-61921-281686--,00.html

  25. Presentation can be found on the Benefits website: http://www.admin.mtu.edu/hro/benefits/index.shtml

  26. Senate Bill 1040 found at: http://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0300.pdf

  27. QUESTIONS?

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