SB 1040 www.SB1040.com GLP & Associates, Inc. SB 1040 www.SB1040.com GLP & Associates, Inc. 37000 Twelve Mile Road, Suite 101 Farmington Hills, MI. 48331 (877) GLP-WINS www.glpwins.com
DEADLINE: All elections must be made in miAccount beginning Tuesday, September 4, 2012, and no later than 5:00 p.m. EDT, Friday, October 26, 2012. Changes to any election must be made in miAccount before the election deadline. http://www.michigan.gov/orsmiaccount *Material included in this packet has been compiled from the latest information available at the office of retirement services as of August 22nd, 2012.
MPSERS BASIC PLAN Action Taken 0% Employee Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change 4% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% 4% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan Benefit Freeze Opt out pension(to) Defined Contribution
MPSERS M I P Fixed Action Taken 3.9% Employee Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% 7% Employee Contribution until termination. Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier Benefit Freeze Opt out pension(to) Defined Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan
MPSERS M I P Graded Action Taken Up to 4.3% Employee Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Years of Service after Jan 1st, 2013 Multiplier = 1.25% No Change 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier Benefit Freeze Opt out pension(to) Defined Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan
MPSERS M I P Plus Action Taken as of July 1, 2008 Action Taken 6.4% Employee Contribution Multiplier drops from 1.5% to 1.25% Jan 1st, 2013 No Change 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier Benefit Freeze Opt out pension(to) Defined Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan
MPSERS Pension Plus Action Taken As of July 1, 2010 Action Taken 6.4% Employee Contribution Multiplier drops from 1.5% to 1.25% Jan 1st, 2013 Defined Contribution Continues No Change 7% Employee Contribution until 30 years of Service. Multiplier = 1.5%, After 30 years Multiplier = 1.25% 7% Employee Contribution until termination . Multiplier = 1.5% for all years (Pending ORS clarification) Maintain 1.5% Multiplier Benefit Freeze Opt out pension(to) Defined Contribution Years of Service through Dec. 2012 Multiplier = 1.5% Deferred until age 60 Jan. 1st, 2013 – Flat employer contribution of 4% to Defined Contribution Plan
Employees hired after 9/4/2012 Employee Choice MPSERS Pension Plus Plan Or with 50% match from employer, up to 6% of employee salary Defined Contribution Plan Retiree health insurance replaced with a Defined Contribution Plan match up to 2%. Additional lump sum payment of $1,000 or $2,000 at retirement
Retiree Healthcare Fund Personal Healthcare Fund 3% Employee Contribution continues and goes to prefund retiree health care If employee is not eligible for retiree health care at retirement, contributions are refunded monthly over 5 years after age 60 Opt out of 3% Employee Contribution. Replaced with 2% Defined Contribution match.
Revised Medical Benefits Increase retiree health care monthly payment from 10% to 20% of premium after Jan. 1st, 2013 No change for Retirees 65 or older as of Jan. 1st, 2013