Employee 3% ORS Refund Information

The Michigan Supreme Court has recently ruled that all 3% healthcare contributions deducted from employees paid between July 2010 and September 2012 were unconstitutional. These deductions were returned to each school district to distribute to current and former employees.  

The Office of Retirement Services (ORS) started notifying members via email on Friday, January 19 of the refund amount, which also includes interest. If you worked for a school district in the State of Michigan during this time period and did not receive a communication from ORS regarding your refund, please see instructions on the MPSERS Member Website, click here.

Refund of the 3% Contribution:
The 3% Refund Distribution Payments from Howell Public Schools will be made on Friday, March 16, 2018
 -  State and federal amounts will be withheld as the contributions are no longer considered tax exempt. There will be no change in the FICA status.
-   The refund and interest income amounts will be separately identified on the pay stub.
   - Refund – “3% ORS Refund”
   - Interest Income – “3% ORS Interest”

Former employees:
Former employee payments will be sent in the mail on March 16, 2018, to a verified address. If you did not verify your address with the Business Office, please click here and fill out the attached form. The form also has a section to fill out if you have had a name change. Send the form to the Howell Public Schools Business Office. Once received and verified, the payment will be mailed.

Also note, you will be receiving a 2018 W2 from Howell Public Schools which will include all the tax information pertaining to this refund. We will be preparing the 2018 W2 in January of 2019.  If your address changes prior to January 2019, please provide us with the updated information.

Other resources:
Michigan Office of Retirement Services (ORS) 3% Healthcare Contributions FAQs, click here.
Howell Public Schools FAQs, click here.

If you have additional questions, please contact the Howell Public Schools Business Office at 517.540.8432, by fax at 517.548.5249 or email business@howellschools.com.

Updated March 13, 2018

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