Information on State of Michigan, Office of Retirement Services (ORS) 3% Refund
The Michigan Supreme Court issued a unanimous opinion upholding the Appeals Court ruling that the 3% employee withholding to MPSERS that was a part of Public Act 75 of 2010, was unconstitutional. As a result, the amount that was withheld from employees while this Act was in effect will be refunded. ORS has not issued guidance yet, we expect some guidance to be released within the next two months. Districts are responsible for issuing these refunds to current and former employees.
The dates in question about the refund are from July 1, 2010 until September 4, 2012. Employees that made less than $18,000 are going to be refunded at 1.5% (not 3%) for July 2010-June 2011. All employees were charged 3% from July 2011-September 4, 2012. After September 4, 2012 the 3% deduction was a legal deduction, so no refund will be issued on that amount.
Districts are still awaiting guidance on the following processing details:
- For tax purposes, will the 2011, 2012 FICA tax rates, or the 2018 FICA tax rate apply?
- Will corrected W2s for 2010, 2011, 2012 need to be issued?
- How do we handle the interest? Does this need to be reported on a 1099-INT?
- What will the refund process be for deceased employees, or employees out of the country?
- Is there an option for a 403(b) deduction or HSA deduction to avoid the Federal and State taxes? Are W-4’s going to be changed?
- Will the refund be included in the current payroll schedule or will the refund be paid off payroll schedule?
Districts will be waiting until further clarification is provided from the state before issuing refunds.Employees should continue to monitor their personal ORS account for further details on the amount of the refund. The district is supposed to receive funds in the January 22, 2017 State Aid payment.
Below is a link to the FAQ released by ORS
If you are a current employee of the district, you don't need to do anything at this time.
Once the form is completed, you do not need to do anything else at this time. The district will contact you if we are in need of any further documentation.
Thank you for your assistance in this matter!
If you are a former Henry Ford Academy employee who worked for the district between 2010 and 2012 and would like to update your personal information with the district, please fill out the form below.