1 / 25

Office of Retirement Services

Office of Retirement Services. Serving more than 530,000 customers. March 8, 2013. Michigan Public School Employees Retirement System. Agenda. MPSERS Reform – Implementation Update Contribution Rates Retirees Returning to Work – PA 464 of 2012 GASB 68. Thank you!.

roary-kirk
Download Presentation

Office of Retirement Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Office of Retirement Services Serving more than 530,000 customers March 8, 2013 Michigan Public School Employees Retirement System

  2. Agenda • MPSERS Reform – Implementation Update • Contribution Rates • Retirees Returning to Work – PA 464 of 2012 • GASB 68

  3. Thank you! • Employer Outreach to the Members: • 100% validation of members to be given an election • Provided contact information and assistance reaching members • Made personal contacts, hosted seminars and computer labs • 86.7% of members logged in to miAccount • 82% of members made their elections

  4. Implementation Update • We have now implemented PA 300 of 2012! • Over 215,000 members given an election – all had a Healthcare Election; 193,500 had Pension Election.

  5. Implementation UpdateElection Results • Pension Election: • Option 1/Maintain 1.5%: 28% • Option 2/Maintain 1.5 until 30 YOS: 3% • Option 3/Switch to 1.25%: 65% (elected or defaulted) • Option 4/Switch to DC: 4% • Healthcare Election • Premium Subsidy: 89% (elected or defaulted) • Personal Healthcare Fund: 11%

  6. ImplementationHealth Care Contributions • 3% Retiree Healthcare Contribution falls into two categories • 3% contributions continue for those who elected Graded Premium Subsidy • 3% contributions stop as of transition date for those who elected Personal Healthcare Fund • PHF participants received a contribution to their 401(k) equal in value to the amount of their 3% HCC contributions on March 1, 2013. • PHF are fully vested in this 401(k) contribution. • Account will be set up for them at ING.

  7. Contribution Rates

  8. Employer Contribution RatesFebruary 1, 2013 – September 30, 2013

  9. Employer Contribution RatesFY 2013-2014 - Effective October 1, 2013

  10. Employer Contribution RatesFY 2014-2015 - Effective October 1, 2014

  11. Retirees Returning to Work - P.A. 464

  12. Retirees Returning to WorkWhy PA464? • Prevents offloading costs onto other reporting units • Ensures retirement system funding stability

  13. Retirees Returning to Work Critical Shortage • State Superintendent has defined the list • Any retiree must have been retired for 12 months prior to reemployment • Retirees must be directly hired by the school • School will need to pay UAAL* for pension and health (20.96%) • School must report retiree based on their payroll frequency

  14. Retirees Returning to Work • Critical Shortage List Positions • Applies to K-12 school districts, intermediate school districts, public school academies, and charter schools, but not community colleges or district libraries.

  15. Retirees Returning to Work • Substitute Teachers • Hired directly by Reporting Unit, Third Party Administrator, or Independent Contractor • Must pay the Pension and Healthcare UAAL* (20.96%) • Report earnings to ORS by payroll frequency

  16. Retirees Returning to Work • Substitute Teachers • Applies to K-12 school districts, intermediate school districts, public school academies, charter schools, community colleges, and district libraries.

  17. Retirees Returning to Work • School Improvement Facilitator or Instructional Coach • Hired by Third Party Administrator, or Independent Contractor • Must pay the Pension and Healthcare UAAL* (20.96%) • Report earnings to ORS by payroll frequency • Hired directly by Reporting Unit • Critical Shortage provisions apply

  18. Retirees Returning to Work • School Improvement Facilitator or Instructional Coach

  19. Retirees Returning to Work • Core Service applies to those who retired on or after July 1, 2010 • If returning to work in a core service position – no change • Retiree employed directly by Reporting Unit – subject to 1/3 earnings limit • Retiree employed directly by entity other than Reporting Unit – forfeit pension and healthcare subsidy until termination

  20. GASB 68

  21. GASB 68 • Effective for fiscal year 2015. • Liabilities. • Expenses. • Measured as of the plan’s fiscal year end.

  22. GASB 68 • Accounting (reporting) changes, not required funding changes. • The reporting units will be provided the liability and expense amounts. • What are the most likely allocation methods? • GASB has not yet released the GASB 68 implementation guide. This guide will presumably provide more guidance on acceptable allocation methods.

  23. Questions???

  24. ORS Contact Information • Employer Reporting • Website: www.michigan.gov/psru • Call Center: 517-636-0166 • Andy Kolp • 517-636-0143 or kolpa@michigan.gov • Angie Schrauben • 517-322-6547 or schraubena@michigan.gov

  25. ORS Contact Information • Member Website • www.michigan.gov/orsschools • Member Customer Service • 800-381-5111 • Member Self Service • www.michigan.gov/orsmiaccount

More Related