If you are a brand new school employee, or know someone who is, be aware that state law requires newly hired school employees in Michigan to select between two retirement plan choices within 75 days after their first payroll date—or the state will choose for them.
And once a selection is made, it can’t be changed.
Retirement benefits are a large part of a total compensation package. Not understanding what is offered can cause an individual to lose out on financial benefits, such as a pension.
That is why MEA is holding several trainings to help educators better understand their choices and the importance of choosing a plan within the 75-day window. Because this decision is so important, all educators are invited to attend a training, regardless of membership in the union.
Attendees will learn about the two retirement choices now offered: the Defined Contribution (DC) plan and the Pension Plus 2 Plan. A new hire who does not make a choice within the 75-day window defaults into the DC plan, which is similar to a 401k.
Space in the trainings is limited, so reserve a spot now at. www.surveymonkey.com/r/retirementchoices. Choose the training date that works best for you, but make sure it is less than 75 calendar days from your first payroll date.
If your first payroll date was in early August, choose the training on either Oct. 5, 8, or 19. If your first payroll date was August 13 or later, you could also choose the Oct. 22 or 26 training. If your first payroll date was in September or later, you can choose any of the above dates or Nov. 12 or 16.