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Employees: Important information regarding ORS 3% Healthcare refund

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 payment of the amount to be refunded on January 22, 2018; Mason Public Schools will then refund these amounts to current and former employees.  Because the contributions were withheld on a pre-tax basis, we are seeking guidance on how these funds should be taxed when refunded.  Once we have all of the information, we will communicate a specific payment date for the refund, but our goal is to have refunds processed no later than the end of March for current employees and former employees who have confirmed their contact information.  At this time we are planning these funds to be processed in a separate payroll.

Although more details will be forthcoming, ORS has created a Frequently Asked Questions (FAQ) page to help answer questions you may have at this time.  Please check the ORS FAQ document frequently for the latest information on this topic.  It is updated regularly. 


Supreme Court Ruling of 3% Health Care Contribution FAQ


When will I receive my refund?

The date of the refund will be announced when we have all the appropriate information regarding tax withholdings, income treatment, etc.


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. 


What if I’ve left Mason Public Schools?

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.  Also, be sure to update your information on the  Michigan Office of Retirement Services “MiAccount” website.


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 provide us your current contact 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.


If you are a former employee, click here.

MPS is committed to processing the refunds as quickly as we are able, in accordance with forthcoming guidance.  We will continue to update staff as information becomes available.  We appreciate your patience as we continue to gather information regarding this refund.