Pension Plus plan or the optional defined contribution only plan. The Pension Plus 2 plan combines a Defined Benefit (DB) plan and a Defined Contribution (DC) plan. Schools are now working on issuing refunds. This plan has both a pension component and a savings component. It includes member and employer contributions towards both the DB and DC. Pension Plus and Pension Plus 2 Fourth Quarter Newsletter 2019. DC contribution rates may change based on deduction percentage changes initiated by the member through the third party administrator (TPA). 1. The FY2019 MPSERS retirement contribution rates are detailed below. Are you a Michigan Public School Retiree? Log in to miAccount I am the authorized user of this account. Welcome to the Pension Plus website! A change in the member contribution amount may result in a change to the employer contribution percentage as well. (Employers do not submit employee plan elections after February 1, 2018.) If you are a member of the State pension system and are eligible to retire with MPSERS soon, here’s a helpful page to reference planning for your retirement, whether it will be 2 years from now all the way down to 3 months: Ready to Retire > Countdown to Retirement. An employee must affirmatively elect the new hybrid plan to participate. This new hybrid plan is called Pension Plus 2. Pension Plus and Pension Plus 2 Second Quarter Newsletter 2020 Michigan Public School Employees’ Retirement System. An employee must affirmatively elect the new hybrid plan to … Box 30171 Lansing, Michigan 48909-7671 517-284-4400 A secure retirement depends on a balance of social security benefits, personal savings and a pension. The initial Pension Plus 2 retirement age is set at 60 years old, but if the life -expectancy of the average 65 year old member increases by one or more whole years according to an annual study done by the ORS, then the retirement age may increase one or more whole year s to cover this increase in life expectancy. Michigan Pension Analysis: MPSERS November 30, 2016 15 Basic/MIP with Premium Subsidy 2014 2015 Hybrid (Pension Plus) with Premium Subsidy 2014 2015 . The coinsurance and deductible apply to the annual out-of-pocket maximum. Section 1.1 You are enrolled in Medicare Plus Blue Group PPO, which is a Medicare PPO You are covered by Medicare, and you have chosen to get your Medicare health care coverage through Michigan Public School Employees’ Retirement System’s Medicare Plus Blue Group PPO plan. Is your quality of life protected for your loved ones in case of a disability or death? It matters. (See Page 7.) A retirement plan for members who first worked for a Michigan public school on or after February 1, 2018, and affirmatively elected the Pension Plus 2 plan. Voya® recently presented an online webcast covering your retirement income needs, sources of potential retirement income, and strategies for building a strong financial foundation. Can you tell me? We have been advised that you can expect your refund from any school(s) you worked for during the July 2010 – September 2012 timeframe within about 60-90 days. (DTL4 record), Pension Plus 2 Defined Contribution (DTL4 record), (Member may increase or decrease the contribution percent, but any amount over 2% must be in whole integers, such as 3% or 4% but not 3.5%, 1.0% of gross earnings* (Must match 50% of employer percent up to 1%. These rates include the 2nd year of a 2-year phase-in of the lowered assumed rate of investment return (AROR) from 8% to 7.5%. There are different types of Medicare health plans. We want to connect and keep you informed. Services with ** apply to the $2.5 million lifetime maximum. Plus, we'll be having a bit of fun. Protect yourself and the ones you love. Public School Employees Retirement System. Of that contribution, 2 percent goes toward their Personal Healthcare fund, and their employer will match that 2 percent. See table below for examples.). This contribution rate will be split evenly between the employer and the member. For the last five years, the System has (See Page 10.) WATCH the miAccount log in tutorial. Ambulance You pay 10% of the approved amount, deductible applies. retirement account. The Pension Plus plan (Hybrid Plan) created in 2012 for school employees is 100% funded and carries 1/3 less risk than the MPSERS Legacy plans. All Pension Plus 2 members have a Personal Healthcare Fund, and the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. I understand this account is intended exclusively for conducting State of Michigan retirement business. WATCH the New Insurance Enrollment Features in miAccount video. As with the Pension Plus plan, teachers in the Plus 2 program contribute 4 percent each year to the DC portion of the plan. Benefits Medicare Plus Blue Group PPO In- and out-of-network What you should know Note: Services with * may require prior authorization. Last updated: 02/01/2018 Pension Plus 2 Plan Defined Contribution Plan (DC) Information about plans available can be found at the MPSERS website here: Click here to connect to MPSERS When you begin working at LCC, your employment information will be sent to ORS each pay period. In addition to a pension benefit, members in these plans also have access to retiree healthcare plans and death and disability benefits. Michigan Public School Employees' Retirement System Medical plans for Michigan Public School Retirees. The Pension Plus retirement plan is for Michigan public school employees who began working between July 1, 2010, and January 31, 2018. In This E-Mail: MPSERS – Pension Plus, Income Tax Revenue and the 3% Health Care Contributions, December Committee Meetings! This plan has both a pension component and a savings component. Select one of the Medicare links to see your plan details, including what’s changed due to COVID-19. Q: I don’t know which MPSERS plan I’m under. We administer retirement programs for Michigan's state employees, public school employees, judges, state police, and National Guard members. Note: If you first began working for a Michigan public school July 1, 2010, or later, you're a member of ei… Plus, there are other aggressive actuarial assumptions used by MPSERS that have contributed to the funding problems. The Office of Retirement Services (ORS) offers two Defined Benefit (DB) pension retirement plans within the Michigan Public School Employees Retirement System for members who first worked in the Michigan Public School Employees Retirement System before July 1, 2010. We want to connect and keep you informed. Any member contributions over 2% are reported as DC contributions and an employer match deduction may apply based on the benefit plan of the employee. Pension Plus 2 is a hybrid retirement plan that gives members a pension component and a savings component. Pension Normal 2.90% 4.31% Pension Normal 2.67% 3.23% MICHIGAN PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2019 MPSERS A Pension and Other Postemployment Benefit Trust Fund of the State of Michigan Prepared by: Financial Services For Office of Retirement Services P.O. Retiree health care premium coverage was discontinued for employees first hired on or after September 4, 2012. New! PROBLEMS CURRENTLY FACING MPSERS • The Assumed Rate of Return used by the Basic plan and Pension Plus Plan are exposing the state to significant risk • Some actuarial methods and assumptions are out of step with best practices • Pension Plus Plan (i.e. See section 6.01.07 Defined Contribution (DC) Plan. Recommended to you based on your activity and what's popular • Feedback All Pension Plus 2 members have a Personal Healthcare Fund, and the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. *Once an account has been established with the third-party administrator (TPA) for a member in a Defined Contribution plan or Personal Healthcare Fund the member may increase or decrease the member DC contribution or they may opt out of the plan by changing the deduction to 0%. All employees who first worked on or after February 1, 2018, are members of the Pension Plus 2 plan, if they elect this plan by logging into miAccount. effective 2/1/2018 if elected “Hybrid”) did not solve the problem Michigan Pension Analysis: MPSERS June 14, 2017 3 Definition of a Member, 4: Reportable & Nonreportable Compensation, 6: Member Benefit Plans and Contributions. MPSERS Retirement Application. To say this has been a busy week is an understatement! The legislative “lame duck” session is lining up to be everything you would expect, and then some! The other 2 percent goes to their retirement savings plan, and their employer will match 1 percent. Essential information about the contributions and interest for each employee has been provided to the schools previously. Rates are detailed below: MPSERS Retirement Rates for FY2019 Basic MIP w/Prem Subsidy Pension Plus w/Prem Subsidy Pension Plus PHF Pension Plus to DC w/PHF Personal Healthcare Fund (PHF) Your Pension Plus retirement plan is one of the most valuable benefits your employer provides to you — it pairs a guaranteed retirement income with a flexible retirement investment account. PENSION PLUS PENSION PLUS 2 PLAN ANNUAL INCOME FROM OPTION 1 (No Survivorship Benefit) PENSION PLUS AND PENSION PLUS 2 PLAN DEFINED BENEFIT HOW MPSERS CALCULATES YOUR BENEFIT: Total Number Years of Service X Average Salary X 1.5% Online visits let you see a doctor when your primary care doctor isn't available. The Pension Plus (Hybrid) Plan 11 ‒ The Pension Plus Plan is a hybrid plan including both a defined benefit pension component as well as a defined contribution 401k style component. An employee newly hired in MPSERS today has a choice between a hybrid defined benefit (DB)/defined contribution (DC) plan (called Pension Plus 2 Plan, or PP2) and a straight DC plan. You are required by law to begin annual withdrawals, called Required Minimum Distributions (RMDs), from both your 401(k) and 457 Plan accounts and from other employer-sponsored retirement plans by April 1 of the The Michigan Public School Employees’ Retirement System includes Defined Contribution and the Pension Plus retirement plans. December 2, 2016. MPSERS 101 – Rates . MICHIGAN PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM ... established a new Pension Plus Plan which provides all individuals hired on or after July 1, 2010, with a combined Defined ... Pension Plan and 2.5% for the Other Postemployment Benefits (OPEB) Plan. You're in the Pension Plus 2 retirement plan for Michigan public school members if you: Public Act 92 of 2017 established a new hybrid plan for Michigan public school employees who first work on or after February 1, 2018. With the Pension Plus 2 plan, employer and member DB contribution rates both may change each fiscal year. 2. Public Act 92 of 2017 established a new hybrid plan for Michigan public school employees who first work on or after February 1, 2018. For more information, you can read our Legislative Summary, or you can review PA 92 of 2017 (previously SB 0401). Check out the free Blue Cross® Virtual Well-Being webinars. Pension Plus Plan members Defined Contribution Plan members . (See Page 4.) We'll be sharing helpful information about retirement planning, links to free resources provided by ORS, and news updates — all to help you prepare for retirement. Governmental Accounting Standards Board (GASB), 3: Who Do I Report? The Pension Plus Plan is exposed to the same patterns and practices threatening the Non-Hybrid plan. Section 1.1 You are enrolled in Medicare Plus Blue Group PPO, which is a Medicare PPO You are covered by Medicare, and you have chosen to get your Medicare health care coverage through Michigan Public School Employees’ Retirement System’s Medicare Plus Blue Group PPO plan. MICHIGAN PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM ... Public Act 75 of 2010 established a new Pension Plus plan which provides all individuals hired on or after July 1, 2010, with a combined Defined Benefit and Defined Contribution benefit structure. ORS has provided contributions back to the schools as of January 22nd. If an employee does not make an election he or she will be enrolled in the DC plan. PA 75 and 3% Healthcare Contributions FAQs Protection products like disability This includes over 530,000 customers (approximately 227,000 active and 281,500 retired members). Michigan Public School Employees' Retirement System Resource Guide Helping support your health for 2021 Easy ways to get a flu shot. The Pension Plus 2 retirement plan is for Michigan public school employees who began working on or after February 1, … At best, the 7% return assumption used by the Pension Plus hybrid plan has a 50/50 chance of being accurate. The proposed defined contribution only plan would have no volatility for new hire benefits, creating fixed costs in the long-term. This new hybrid plan is called Pension Plus 2. The hybrid plan is financially manageable with a cost to employers of just over 4 percent of payroll. First worked for a Michigan public school on or after February 1, 2018, and you elected the Pension Plus 2 plan. ... Medicare members: Medicare Plus … Any member contributions over 2% are reported as DC contributions and an employer match deduction may apply based on the benefit plan of the employee. 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