In an effort to keep you updated, to help answer your questions and gather information, the district has put together this Frequently Asked Questions document regarding the Supreme Court's recent ruling on the three percent Healthcare Contribution. If you have a question or concern that is not on our list, please email Leslie Young, Director of Business Services, at firstname.lastname@example.org.
How do I know if I have a refund coming?
If you had reportable wages between July 2010 and September 2012, the three percent healthcare contribution during that period will be refunded.
If I didn't receive the email from ORS containing my contribution amounts and interest, how can I find out about my amount?
First, check your junk mail or spam folder. If after checking there, if you find you still don’t have the email from ORS, you may use one of the following methods to obtain your amount. Due to a high volume of inquiries, please allow 3-5 business days for us to respond, regardless of the option you use:
- Method 1: If you are registered for miAccount, you may log in and send us a message using the secure Message Board. Use the category “MPSERS 3% Healthcare Refund” and in the message, ask for your amount of contributions and interest.
- Method 2: If you are not registered for miAccount, you can register to send us a secure message. Otherwise, use the Guest Message Board to send a message asking for the amount of your contributions and interest. Use the category “MPSERS 3% Healthcare Refund.” In the message you must also include the following information:
- First & Last Name
- Date of Birth
- City as listed in your address of record with ORS
What if I don't know my MiAccount login information?
Please contact the Office of Retirement Services at https://ssprd.state.mi.us/wss/security/login.do?method=showLogin&retirementSystemId=1030
When will I receive my refund?
All refunds will be issued by check on Friday March 9, 2018. Checks for active employees will be sent via internal mail, checks for inactive or deceased employees will be mailed through US Postal Service.
Can my refund be deposited into a 403(b) or HSA account?
Yes, if you are a current employee (received wages in 2018) you can have the contribution portion only (not interest) deposited into a 403(b). You can also have the contribution portion only (not interest) deposited into your HSA account if you currently have an account. The total amount of contribution deducted from your pay may not exceed the amount of net wages available after deductions for applicable payroll taxes and mandatory withholdings (ex: FICA, mandatory garnishments, etc.). If your elected contribution exceeds this amount, you understand that the amount contributed will be reduced to the maximum amount of net wages available after the deduction of applicable payroll taxes and mandatory withholding. Deduction forms will need to be turned into the Business Office by February 28, 2018 in order to be processed for the refund payment on March 9th. Below are the links to the forms:
403(b) One Time Deduction Form https://drive.google.com/open?id=1liQJ8EjB4GPYmuoB8ReByO39LRgvhPnL
HSA One Time Deduction Form https://drive.google.com/open?id=1xFn9EpRtDe3usowgDb85SWjmVt51BpBM
What if I am retired?
If you worked anytime during July 2010 until September 2012, your three percent healthcare contributions during that time will be returned. Please email your current contact information to Davison Community Schools at: https://goo.gl/forms/LZ77FaP62VI37yiq2
What if I've left Davison Community Schools?
The refund will be processed by the district you worked for during the mentioned dates. If you worked for more than one district, make sure each district has your current contact information. If you need to update your information, please contact Davison Community Schools at https://goo.gl/forms/LZ77FaP62VI37yiq2
How is the money refunded if the contributing member is deceased?
If you are a family member of a contributing employee who is now deceased, please leave your contact information at https://goo.gl/forms/LZ77FaP62VI37yiq2 to receive further information.
Why can't the ORS send my refund directly to me instead of the employer?
There are taxation rules for these payments that can only be implemented by the employer.
How will this impact my taxes?
Federal income tax withholding will be handled as follows:
Employees with District earnings in 2017 or 2018 calendar years:
- Withholdings will be at flat 22% supplemental tax rate. Under IRS regulations, these earnings are considered supplemental and employees are deemed current employees.
Employees with no District earnings in 2017 or 2018:
- Withholdings will be computed using the aggregate method for withholding, which will use the W-4 data in HRS, following the daily/miscellaneous payroll period (IRS Notice 1036 Table 8).
Garnishments and other mandatory deductions will be deducted based on the instructions or requirements of each court/garnishment order.
Is interest included with these contributions?
Yes. Interest will be included with the contributions when they are returned. The courts directed administration to maintain the funds in a capital preservation escrow account, which accrues a very minimal amount of interest.
Will the three percent refund be considered additional income, and will that cause my pension to be re-calculated?
No. Your Final Average Compensation (FAC) is calculated using gross wages. The three percent healthcare contribution was deducted from your gross wages, so that deduction won't change the FAC calculation at all, regardless of when you retire (or retired).
I have retired and returned to work at a school. Will the refund of healthcare contributions affect my 2018 earnings limit?
No. The refunded contributions and interest that will be issued through the school districts will not count toward your retiree's earnings limit in 2018. Refunded contributions of this type are not reported to ORS as retiree earnings.