Working After Retirement. May 3, 2017 Steve Cary and Elizabeth Eastway

Transcription

1 Working After Retirement May 3, 2017 Steve Cary and Elizabeth Eastway

2 Agenda Retirees who Return to Work Member Benefit Plans Link Critical Shortage Core Service Reporting Earnings for Retirees Working After Retirement Employer Guide Q and A

3 Retirees Who Return to Work MPSERS retirees who return to work following a bona fide termination must be reported to ORS. MPSERS retiree status can be verified using the Member Benefit Plans link on the Employer Reporting website. The Working After Retirement Employer Guide can be used to determine which class codes to use for proper reporting.

4 Member Benefit Plans Link

5 Member Benefit Plans Link

6 Member Benefit Plans Link

7 Critical Shortage The list of current critical shortage positions can be found on our website: michigan.gov/psru Questions regarding critical shortage determinations can be directed to the Michigan Department of Education (MDE).

8 Core Services Services that are important to the central purpose of a reporting unit. Hired by a 3 rd Party or as an Independent Contractor Administration Assistant Superintendent Program - Department Direction Superintendent Supervision - Management Professional Counseling Curriculum Instructional Consulting Speech and Language Therapist Teaching Temporary Teaching Accounting Auditing Personnel

9 Reporting Earnings for Retirees Report gross earnings. Please see RIM section 9.01: Earnings for Retirees Report retiree earnings when paid, not when earned. Report retirement incentives when paid. Cash in lieu of an excluded benefit is considered gross earnings.

10 Examples of Gross Earnings Cash in lieu of an excluded benefit Employee amounts contributed to an annuity (excluded from Box 1 of W-2) Employee costs to an employer-sponsored healthcare plan (excluded from Box 1 of W-2) Example of Reporting Gross Earnings $47,000 Federal Taxable income reported on Box 1 of W-2 +$3,000 Pre-tax employee contributions to a tax-sheltered annuity $50,000 Gross earnings (amount to be reported in the Employer Reported Wages field on the DTL2 record for retiree gross earnings)

11 Reporting Tax-Sheltered Annuities Money paid to a tax-sheltered annuity (TSA) by a reporting unit for an employee, as remuneration for services, is reportable for the amount actually paid into the TSA. Report TSA when paid, not when earned.

12 Reporting Summer Spread You may not combine payroll hours and earnings for multiple pay periods into a single pay in order to avoid earnings limit requirements. If a retiree is working full-time and your reporting unit allows wages to be paid over 26 pay periods, report the wages and corresponding hours on a DTL2 record. Use begin and end dates correlating with the payroll calendar submitted to ORS. Please see RIM section Payroll Calendars.

13 Reporting Summer Spread Example A reporting unit negotiates a contract with a retiree for $13,000 in total compensation for working 2 hours a day at $25/hour. 2 hours a day ($50/a day rate) 10 business days a pay period (20 hours a pay period) 26 pay periods $50 x 10 days = $500 x 26 pay periods = $13,000 On your DTL2 record: Report 20 hours and $500 gross earnings for each pay period throughout the payroll calendar. Do not change the hours or wages into pay periods inconsistent with payroll calendar reporting.

14 Working After Retirement Employer Guide The online guide, Working After Retirement Employer Guide, is available to assist you in determining which class codes to use when reporting retirees.

15 Betty Jackson Retirement Effective Date: 7/1/11 Position: Bus Driver Hired Directly or Indirectly: Directly Years in Critical Shortage Position: 0.2

16 Frank Smith Retirement Effective Date: 10/1/16 Position: Aide Hired Directly or Indirectly: Indirectly Years in Critical Shortage Position: 0.0

17 Sally Hanson Retirement Effective Date: 8/1/12 Position: Substitute Teacher Hired Directly or Indirectly: Directly Years in Critical Shortage Position: 3.0

18 Questions??

19 Contact Information Office of Retirement Services Website: Customer Service: (800) Employer Reporting: (517) Website: