Office of Retirement Services Public Act 75 refunds update – 03/07/18
The first group of refund checks to SC4 retirees with current addresses has been processed. All refunds are being made via paper checks. The refund checks have two components, wages coded ORS, and interest coded INT. The wages portion is considered taxable wages for federal, state and local purposes. The interest portion may be required to be reported on your 2018 individual tax return. Please consult with a qualified tax professional for guidance.
The remaining refunds for former SC4 employees are scheduled to be processed by the end of March 2018, if SC4 has a valid address on file.
Former employees and retirees, who were employed at SC4 between 2010 and 2012 and had mandatory 3% contributions withheld from their pay, should fill out this form to update their contact information.
Michigan Office of Retirement Services (ORS) Public Act 75 Refunds of Mandatory 3% Retiree Healthcare Contributions
The Michigan Supreme Court ruled on December 20, 2017, that PA 75 of 2010, which required mandatory employee contributions of 3% of compensation to fund retiree healthcare and was in effect from approximately July 2010 through September 2012, was unconstitutional. Therefore, those contributions (which were being held in escrow) were ordered to be refunded back to the affected employees. ORS has returned the collected funds to employers, including interest, for distribution to eligible employees.
ORS has emailed important information to affected employees informing them of their refund amount. If you paid the mandatory contributions and have not received an email, or if you have questions about the amount, please refer to the ORS website and review the Frequently Asked Questions page for answers.
St. Clair County Community College is currently working with our auditors, as well as other community college and school district employers, to determine a process for refund distribution that incorporates the many federal, state and local tax-related reporting implications. SC4 will process the refunds as soon as possible and will publish updates on this page when refunding dates have been established.
To allow for accurate and timely refund processing, current employees should ensure up-to-date information is on file with the Human Resources Office.