Most Current Information on 3% Refund to Employees

Most Current Information on 3% Refund to Employees
Update 3/12/18:
3% Refund Payment Update
3% Refund Payments for Former District Employees
We are currently preparing refund payments for former employees and plan to print checks the week of March 26 and mail by March 30. If you need to update your address, you may do so by calling the Payroll Department or filling out the Former Employee Contact Form linked below. If you have already called or completed the form, we have your information – please do not submit the form multiple times as this slows our address verification process.

Refunds for deceased former employees will be processed last. We will be contacting beneficiaries separately to obtain payment details and expect to make those payments in mid-April, provided we receive the necessary information.

Update 2/14/18:

3% Refund Payment Update
Current District employees will receive refund payments the week of February 19. These payments will be separate from the 2/23/18 payroll and will be paid via normal payroll distribution (direct deposit or paper check, however you receive your regular pay). A few notes on the refund payments:
 This payment is considered taxable supplemental wages and it will be reported in 2018 W-2s (combined with Box 1 wages).
 The payment is subject to federal, state and local income tax. Federal income tax will be withheld at 22% under the Flat Rate Method, based on guidance from the IRS and District auditors.
 Social Security and Medicare taxes were withheld from the original wages in 2010-2012 and therefore will not be taken out of the refunds.
 Federal, state and local taxes (and garnishments if applicable) will be the only deductions applied to the refund. No amounts will be withheld for retirement, H.S.A, 403(b), etc.
Refund payments for former employees will be processed separately with a target time frame of mid to late March.

If you are a former Port Huron Schools employee that was employed between 2010 and 2013, please complete this form with your current contact information. In addition, we recommend that you confirm and/or update the contact information in your MI Account. This will help ORS and the District process the refund. At this time, no further action is required. As more information is announced, it will be added to this page.
Do not fill out this form if you are a current Port Huron Schools employee.



Background Information

The Michigan Supreme Court recently upheld a state Court of Appeals ruling that PA 75 of 2010, which mandated members to contribute 3% of their compensation to the Retiree Healthcare Fund between 2010 and 2013, is unconstitutional and that member contributions, currently held in escrow, shall be refunded to members.

The Office of Retirement Systems is working to notify members of the amount of their refunds. School districts will also receive this information on January 10, 2018, and a lump sum refund on January 22, 2018; Port Huron Schools will then in turn redistribute the refunds to current and former employees as soon as possible.

The Port Huron Schools is committed to processing the refunds as quickly as we are able, in accordance with forthcoming guidance, and will update this webpage with the latest information as we receive it.