Retirement - MPSERS Tax-Deferred Service Credit Purchase
Under this program, participating employers will, at the request of an employee who is a member of Michigan Public School Employees Retirement System (MPSERS), be able to deduct tax-deferred amounts from the employee's pay for service credit purchased and the repayment of refunds.
- The eligible employee and employer must enter into a binding and irrevocable Tax Deferred Payment Agreement (TDP).
- Once the reporting unit and the employee have completed the TDP Authorization Form, payments must continue every payroll until the service credit purchase or purchase of a repayment is paid in full, or the employee terminates employment with the reporting unit.
- TDP payments cannot be reduced or postponed because of financial hardship or other reasons.
- If you are interested in purchasing service credit or repaying a refund, the following
steps need to be followed:
- Contact the Office of Retirement Services (ORS) to obtain a Member Billing Statement and TDP Authorization Form at 1-800-381-5111.
- Return the completed TDP Authorization form and Member Billing Statement to the Human Resources Office. The Agreement/Payroll Authorization Form will be sent to ORS for review and approval.
- After approval, Delta College will begin payroll deducting the amount set by the employee
on a biweekly basis for the length of the contract agreement.
- The minimum payroll deduction amount for an employee will be indicated on the Billing Statement.
- The maximum allowable payroll deduction is the employee's gross reportable compensation per pay period, less Social Security, Medicare, and Member Investment Plan (MIP) deductions, per agreement.
- The maximum annual pre-tax withholding for an employee is the lesser of:
¤ the amount eligible to purchase
¤ the employee's current gross reportable compensation
- An employee may have only one Tax Deferred Payment Plan at a time for the same type of service purchase. For out-of-system or nonpublic service purchase types, the employee can request that several work locations be combined into one billing statement for each type available.
- For more information on the Tax Deferred Payment Program, check out the Retirement System's web site at: Michigan Office of Retirement Services .
- If you wish to purchase Universal Buy-in Time, call ORS toll free at 1-800-381-5111 or at 517-322-5103 in the Lansing area, to request a billing statement.
All full-time regular and part-time regular employees can participate in the Tax Deferred Payment Program (TDP) through ORS.