1/12/2018 ORS Refund Update
The Lakeview School District is providing the FAQ below to address inquiries regarding the ruling on the 3% refund from ORS.
Supreme Court Ruling of 3% Healthcare Contribution FAQ
What is the ORS saying (here is the email sent on January 11, 2018 from the ORS to individuals)?
The Supreme Court ruled on December 20, 2017, that PA 75 of 2010, which was in effect from July 2010 until September 2012 and mandated that members contribute 3% of their compensation to the Retiree Healthcare Fund, was unconstitutional and that member contributions (which were being held in escrow) shall be refunded to members. ORS will return the contributions plus interest to employers and the employers will issue refunds of those contributions plus interest to employees who worked during the time PA 75 was in effect. We will send an important email to you on or before January 22, 2018. This email will tell you about the amount you contributed, the amount of accrued interest, and the total amount of your refund for each of the school districts you worked in during that period. If you have questions about the refund, please visit our Frequently Asked Questions page for answers. Sincerely, Office of Retirement Services
What should I do if I didn't receive an email from the ORS?
Update your contact information in your MiAccount to make sure that it is accurate and complete.
How do I know if I have a refund coming?
If you had reportable wages with the Lakeview School District between July 2010 and September 2012, the 3% healthcare contribution during that period will be refunded. Please note that individuals with wages of less than $18,000 per year made a 1.5% healthcare contribution from July 1, 2010 through June 30, 2011 and a 3% healthcare contribution from July 1, 2011 through September 2012. The refund will be adjusted accordingly for these individuals.
When will I receive my refund?
The date of the refund will be announced when we have all the appropriate information regarding tax withholdings, retirement payments, etc. This district's goal is to process payment to individuals in an accurate and timely manner.
What if I’m retired?
If you worked anytime during July 2010 until September 2012, your 3% healthcare contributions during that period will be returned. Please email your current mailing address to email@example.com
What if I’ve left the Lakeview School District?
The refund will be processed by the district you worked for during the mentioned dates. If you worked for more than one district, make sure each district has your current contact information. For the Lakeview School District please forward that information to firstname.lastname@example.org
How is the money refunded if the contributing member is deceased?
If you are a family member of a contributing employee whom is now deceased please share your contact information with email@example.com to receive further information.
Why can’t the ORS send this directly to me instead of sending it to our employer?
There are taxation rules for these payments that can only be implemented by the employer.
How will this impact my taxes?
We do not have all the information at this time to answer this question. As we obtain more information we will release it to you. The business office will work diligently to make sure all the taxation rules are met.
We as you be patient as we work through all the details, the district's goal is to process payment to individuals in an accurate and timely manner.