January 29, 2018
More Updates on the 3%
ORS Emails:
The Michigan Office of Retirement Services (ORS) has sent emails to individuals who are owed money. Offer the following advice to anyone who thinks they should have received it, but did not:
- Contact ORS to make sure they have a correct email address on file by calling 1-800-381-5111 or going to www.michigan.gov/ors and signing into miAccount.
- Contact MEA to make sure we have correct contact information. Please provide name, district, mail address, email and phone. That information can be shared by calling the local field office or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..
Interest Rate:
MEA is well aware that the interest rate from the escrow account is ridiculously low. MEA attorneys will be filing a motion and brief in Michigan Court of Claims arguing that a much higher rate of interest is warranted. We are still fighting for you! We will keep you updated on developments. Please see this article in the Detroit Free Press for more details.Allocating Refund to 403B:
Note: Before making any financial decisions such as this you should consult with your accountant, financial advisor, or trusted confidante.
If you ALREADY HAVE a 403b TSA through BPS once we are informed of this special pay date you will want to go to the OMNI site and log in in the lower left blue box Michigan for the state and Birmingham Publics Schools for the employer. On the next page in the upper right column you will see If you DO NOT presently have a 403b TSA through BPS, a friendly recommendation is to set one up in advance by following the same steps as above except that instead of a "One-Time Contribution" select "Recurring Contributions" and choose a small amount ($5, maybe) or something you're comfortable with. (Note: This can be stopped if you wish at any time following the 3% repayment.) By doing this sooner rather than later you will better ensure that the account is opened and you'll be able to see that a deduction has been made and deposited. Once you confirm this is working, you will follow the steps above for a "One-Time Contribution "at least one week before the pay date. January 16, 2018 The line item on your paystub is entitled: "MIPH Retiree H/Care Fund 3%." To verify the total amount deducted from July 2010 to September 2012, you need to look at the last paystubs for the years 2010 and 2011 and the final August paystub for 2012. Adding these three line items should equate to the final amount owed to you by ORS before taxes and interest. When PA 300, which was determined to be legal by the court, replaced PA 75 in 2013, many teachers selected to continue the 3% to cover their future retiree health care costs. The district continues to use the same label for this new deduction. Although the ORS FAQ document indicates the money will be returned to local school districts on January 22, 2018, there has been no new contact from the state regarding this plan. BPS and the BEA are skeptical that the state can meet the January 22 timeline the ORS arbitrarily imposed. So, don’t be surprised if the money doesn’t come to the school district exactly at that time. The MEA has reported that due to the lack of specific guidance from ORS, school business leaders are not sure on how to refund this money once they get it. There are issues of whether this should be paid as part of a regular payroll cycle (creating tax implications), whether this should be paid on a separate off-cycle check, or how to handle requests for the money to go into retirements savings accounts. School district officials are seeking answers when they meet with the state this week. BPS has told us that they know employees have been waiting for this money, and it will be paid out to us soon, but we need everyone to remain patient because this not as easy as just running another payroll cycle. The MEA and all other plaintiffs in this case are trying to ensure both speed and accuracy in these reimbursements. They have requested that the trial court (where the case has been returned) require ORS to develop guidelines for this reimbursement so that it is handled consistently from district to district. Further, the MEA and the others unions are working diligently to make sure the court ensures no exorbitant costs (and there are likely to be many what with the hundreds of thousands of school employees who will need to be located, have checks cut, and delivered) of reimbursing be borne by local school districts. In the MEA's view, this was the State of Michigan's doing and it should be rectified on its dime -- and not from the School Aid Fund. Only members in good standing are eligible for the full range of legal services provided under the MEA Legal Representation Policy. They must be in good standing at the “time of the action complained of” and must maintain active membership in good standing for the entire time legal services are provided. The “action complained of” would be the dispute of the refund so it is critical that you are in good standing now so you are fully protected. Under the Legal Representation Policy, the MEA has the right to deny representation when it appears that an individual became a member for the purpose of receiving legal representation. Signing up for membership contemporaneous with a dispute over a refund will result in a denial. January 5, 2018
3% Update: New FAQs
Where on my paystub do I look to see the amount that was deducted?
How do I verify the amount that is owed to me?
Why does the line item “MIPH Retiree H/Care Fund 3%” continue after September 2012?
Will BPS get the funds from the State on January 22nd?
What other hold ups might there be in getting my money?
What is the MEA doing to assist in this process?
What if there is an error in returning my money, will the MEA help me fix the problem?
3% Update
Below are the most recent FAQs developed by the State's Office of Retirement Services and the MEA. Attorneys, for the MEA and other unions are working together to discuss these matters with the State. They want to make sure union positions on all issues are strongly considered. The district is scheduled to received funds from ORS on January 22nd and distribute the fund to staff after that. How that will be done and in what timeframe, we have not been told. Be sure though that the BEA will work with the district to make sure members and non-members receive monies they are owed in a timely fashion.