ORS Refund of 3% Healthcare Contribution

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UPDATE 2.8.18  – ORS Refund Information

If you worked for Oakland Schools between July 2010 and September 2012 and have been notified by the Office of Retirement Services that a refund of your healthcare contributions under PA 75 of 2010 are being returned to Oakland Schools, please read the important refund information and timelines below.

Current Employees – Current employees have two options for receiving their refund:

Option 1: Receive 100% of the refund and interest, less applicable taxes in your regular paycheck on March 9, 2018. The refund will be taxed at a flat 22% in accordance with IRS regulations. If this is the option you prefer, no further action is required on your part.

Option 2: Defer a portion of your refund into your 403(b) or 457 plan or Health Savings Account (HSA) via a one-time deduction, with the balance of your refund being paid via a live paycheck in a supplemental pay run on March 16, 2018. Please note under this option, direct deposit is not available. If you would like to defer a portion of your refund into a 403(b) or 457, please go to the 3% Refund Deferral Calculation to determine the maximum you can defer.  Oakland Schools is requiring a minimum $25 refund to be distributed to employees, which will be subject to FICA tax.  Once you have determined your maximum one-time deferral, please complete the appropriate form using the links below:

Complete the 457 form
Complete the HSA form 

All forms for deferrals must be submitted no later than February 21.Please submit a copy of your 3% Refund Deferral Calculation to Stephanie Mattei at Stephanie.Mattei@oakland.k12.mi.us. If a deferral form is not received by February 21, your full refund will be paid with the regular pay on March 9.

Former Employees – Former employees will receive their refund less applicable taxes in a March 30 live paycheck, assuming Oakland Schools has been contacted by the former employee with their current address.  If you have not sent your current address to Oakland Schools via the email to ORSINFO@oakland.k12.mi.us, you have until March 20 to do so. If you haven’t sent in your current address by March 20, your check will be delayed until address verification has occurred.

All Employees – Both current and former employees will receive interest on the refund, which will be shown as a separate line on your paycheck or remittance.  Interest is taxable income, however, Oakland Schools will not tax the interest; employees must report the interest income on their 2018 tax return.  Oakland Schools will report the interest income in Box 14 on employees’ 2018 W-2.
Questions? Please email ORSINFO@oakland.k12.mi.us

UPDATE 1.23.18 – All public school employees that will be receiving the 3% healthcare refund should have received an email directly from the Office of Retirement Services with your refund amount. If you did not receive an email, ORS recommends the following action:
First, check your junk mail or spam folder. If it’s not there, use one of the following methods to obtain your amount. Due to a high volume of inquiries, please allow 3-5 business days for ORS to respond.

Method 1: If you are registered for miAccount, you may login and send ORS a message using the secure Message Board. Use the category “MPSERS 3% Healthcare Refund” and in the message, ask for your amount of contributions and interest.

Method 2: If you are not registered for miAccount, you can register to send ORS a secure message. Otherwise, use the Guest Message Board to send a message asking for the amount of your contributions and interest. Use the category “MPSERS 3% Healthcare Refund.” In the message you must also include the following information: First & Last Name, Date of Birth, City as listed in your address of record with ORS.

Individuals employed by Oakland Schools from July 2010 through September 2012 are eligible for a refund of the 3% contribution made toward retirement healthcare during this time period under PA 75 of 2010. 

The Office of Retirement Services has distributed a list of employees that were eligible for a refund to local school districts and intermediate districts. A group of industry professionals is currently working together to determine the best way to handle refunds to individual members to ensure the tax considerations are properly handled.  We ask for your patience while we wait for further guidance and make preparations on our end to issue these refunds to active employees, retired employees and former employees no longer with the organization.

If you are a former employee and would like to update your contact information, send Oakland Schools an email with your current address, phone number and email address to ORSINFO@oakland.k12.mi.us.

Please refer back to this website for future updates.

Here are answers to a selection of frequently asked questions from the Michigan Office of Retirement Services about the healthcare reimbursement.