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SB 1040 SB1040 GLP & Associates, Inc. 37000 Twelve Mile Road, Suite 101

SB 1040 www.SB1040.com GLP & Associates, Inc. 37000 Twelve Mile Road, Suite 101 Farmington Hills, MI. 48331 (877) GLP-WINS www.glpwins.com.

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SB 1040 SB1040 GLP & Associates, Inc. 37000 Twelve Mile Road, Suite 101

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  1. SB 1040 www.SB1040.com GLP & Associates, Inc. 37000 Twelve Mile Road, Suite 101 Farmington Hills, MI. 48331 (877) GLP-WINS www.glpwins.com

  2. DEADLINE: All elections must be made in miAccount beginning Tuesday, September 4, 2012, and no later than 5:00 p.m. EDT, Friday, October 26, 2012. Changes to any election must be made in miAccount before the election deadline. http://www.michigan.gov/orsmiaccount *Material included in this packet has been compiled from the latest information available at the office of retirement services as of August 22nd, 2012.

  3. MPSERS BASIC PLAN Action Taken • 0% Employee Contribution • Years of Service through Dec. 2012 Multiplier = 1.5% • Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change • 4% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% • 4% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier • Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 • Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution

  4. MPSERS M I P Fixed Action Taken • 3.9% Employee Contribution • Years of Service through Dec. 2012 Multiplier = 1.5% • Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change • 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% • 7% Employee Contribution until termination. Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier • Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 • Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution

  5. MPSERS M I P Graded Action Taken • Up to 4.3% Employee Contribution • Years of Service through Dec. 2012 Multiplier = 1.5% • Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change • 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% • 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier • Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 • Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution

  6. MPSERS M I P Plus as of July 1, 2008 Action Taken • 6.4% Employee Contribution • Multiplier drops from 1.5% to 1.25% Jan 1st, 2013 No Change • 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% • 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier • Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 • Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution

  7. MPSERS Pension Plus As of July 1, 2010 Action Taken • 6.4% Employee Contribution • Multiplier drops from 1.5% to 1.25% Jan 1st, 2013 • Defined Contribution Continues No Change • 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% • 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier • Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 • Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution

  8. Employees hired after 9/4/2012 Employee Choice Defined Contribution Plan MPSERS Pension Plus Plan Or • with 50% match from employer, up to 6% of employee salary Retiree health insurance replaced with a Defined Contribution Plan match up to 2%. Additional lump sum payment of $1,000or $2,000 at retirement

  9. Retiree Healthcare Fund Personal Healthcare Fund • 3% Employee Contribution continues and goes to prefund retiree health care • If employee is not eligible for retiree health care at retirement, contributions are refunded monthly over 5 years after age 60 • Opt out of 3% Employee Contribution. Replaced with 2% Defined Contribution match.

  10. Revised Medical Benefits • Increase retiree health care monthly payment from 10% to 20% of premium after Jan. 1st, 2013 • No change for Retirees 65 or older as of Jan. 1st, 2013

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