The Michigan Public School Employees Retirement System (MPSERS) has approved a new voluntary program that allows our employees to purchase service credit through payroll deduction from gross wages (therefore, from pre-tax dollars). The ISD received a letter from Chris De Rose, Director of MPSERS on June 19, 1998 which outlines some of the specifics of the program. The new program is called the Tax-Deferred Payment program (TDP).
The sequence of events that must be followed is:
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The District Board needs to pass a resolution approving employee participation. This was done by our Board on June 24, 1998, and forwarded to MPSERS.
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The MISD employees who wish to participate need to request a Service Credit Billing Statement from MPSERS. Please note that requesting a billing statement does not obligate you to make a purchase. You may send a written request to: MPSERS, P.O. Box 30673, Lansing, MI 48909-8103 or you may call MPSERS Fast Facts at 1-800-353-6932. Be sure to specify what type of service credit you are interested in.
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Once you receive the billing statement from MPSERS, you must bring it to the payroll office and fill out an Agreement/Payroll Authorization Form in order to participate in the TDP program.
MISD will send the completed Agreement/Payroll Authorization Form to MPSERS prior to making payroll deductions.
If you would like to know more about the Tax Deferred Purchase program or have more questions, you can go to the Frequently Asked Questions sheet provided by MPSERS. Information is provided for active employees, retirees as well as for purchasing service credit.
This is an on-going program that you can elect to participate in at any time. You have all the time you need to think about the advantages and disadvantages of participation; however, after making the election, you are committed to the scheduled deduction you have chosen for the duration of your employment or until your TDP is paid off.