3% ORS Healthcare Refund
Do you qualify for a refund?
The Supreme Court has ruled 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, is unconstitutional and that member contributions which had been held in escrow shall be refunded to members.
The refund you are entitled to based on your employment with Clarkston Community Schools during this time has been received from the State of Michigan-Office of Retirement Services Please note that if you were employed by multiple districts during this time, you will receive separate refunds from your other district(s). If you worked for another district, you are encouraged to contact that district to verify they have your current contact information in order to process their portion of your refund.
Please note that the District was not involved in the computation of the refund or interest; accordingly, we cannot make any adjustments to these refunds. The original deductions were not subject to federal or state withholding; therefore when the refund is processed, federal and state taxes are required to be withheld. Per MSBO/ORS 1022 Committee guidance, active employees refunds will be processed using the "Flat Rate" tax method of 22% federal and 4.25% state. While the interest portion of your refund will not be taxed, it must be included as taxable income on your 2018 Individual Income Tax Return 1040 Form. Please consult your tax advisor with respect to reporting this income on your 2018 Individual Income Tax Return. Please keep your Office of Retirement Services email/letter stating your interest amount and your pay stub with the interest paid as a reimbursable for your tax files.
If you have a current, active 403(b) account established and are not making the maximum annual allowable contribution via your regular payroll deduction, you may direct all or part of your refund to your 403(b) account. If you wish to do so, please complete and signed the two attached 403(b) salary reduction agreements (SRAs) specifically designated for this supplemental pay only and return to payroll, Amanda Wilcox, by February 14. You will need to sign and turn in both an increase SRA form and a decrease SRA form - both forms are attached. Without these two forms by February 14th, we will not be able to process your refund into a 403b retirement account.
Active employees refunds will be processed and directly deposited on a separate payroll dated Friday, March 2. If your regular direct deposit consists of more than one bank account, your refund will be deposited to the bank listed as ‘NET’ on your direct deposit authorization form on file. The inactive and retirees refunds will be processed in a paper check form sometime during the month of March 2018.
Mary Beth Rogers, Executive Director of Business Services
Amanda Wilcox, Payroll Coordinator
Renee Letchworth, Payroll Assistant / IS Coordinator
Kathy Peshl, Accounts Payable Assistant
Sue Guoin, Athletic Finance / Business Office Assistant