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January 12, 2018

Good Morning Former LPS Colleagues,

 We hope that 2018 is off to a good start for all!

The purpose of this correspondence to inform you of the status of the Michigan Supreme Court ruling regarding the 3% employee withholding for health care contributions and how it relates to you and the Livonia Public Schools. 

Below you will find an update for former LPS staff members who were Livonia Public Schools employees during the period of July, 2010-September, 2012.


*The Michigan Supreme Court recently issued a unanimous opinion upholding the Appeals Court ruling that the 3% employee withholding for healthcare contributions under Public Act 75 of 2010 was unconstitutional.

*The aforementioned payroll withholdings between 2010 and 2012 that were made under this legislation will be refunded.

*It is expected that the State will transfer the contributions back to local school districts shortly after  the January 22, 2018 State Aid payment.

Current Update:

*Livonia Public Schools has made it a priority to learn as much as possible about the details related to this decision, and has begun to prepare for the processes that will need to be in place in order to distribute these funds.  We will have approximately 2,400 employees (current and inactive) for whom we will be processing a refund.  

*Each individual record needs to be prepared by our Finance Department, and reconciled with information from the Office of Retirement Services.  A number of complexities exist related to this; therefore, we will be working diligently to prepare for the processing of refunds, while working to maintain accuracy at each step of the process.  Our goal is to do so as expeditiously and accurately as possible.  

How & When Will My Refund Come Back to Me?

*Former LPS staff (who worked in LPS during July, 2010-Sept. 2012) will receive payment in one lump sum via check mailed out to your home address on file with the ORS.  If you log into your miAccount and find that the address on file is incorrect, or if you just want to be certain that LPS has your correct address, please fill out this google form and send us your current home address: https://goo.gl/forms/xzPwJBvcm1Y0sqWT2

*The District is obligated to follow all laws and guidelines regarding taxation of these funds.  We are awaiting specific guidance on this issue, in order to prepare for appropriate taxing of the funds prior to distribution.

*We have established an internal timeline to complete these processes, with the goal of mailing out refund payments in early-mid March.  This timeline is tentative, and will be finalized over the next couple of weeks as the processes both locally and at the state level are more firmly established.  We will post additional updates on our website if necessary, once many of the items referenced have been finalized.

ORS will notify members of their refund amount by email on or before January 22, 2018. Please continue to check the “What’s New Section” on the ORS website for more information as it becomes available.  http://www.michigan.gov/orsschools/0,4653,7-206-36609-456119--,00.html

Additionally, ORS is suggesting employees update information on their miAccount as soon as possible to be sure current addresses are on file:  https://ssprd.state.mi.us/wss/security/login.do?method=showLogin&retirementSystemId=1030

Thank you.

Steve Archibald                                                        Alison Smith

Asst. Superintendent for Human Resources           Director of Finance