Skip to content

Update for former employees of LCC regarding the 3% health care contribution refund

January 18, 2018

On Dec. 20, 2017, the Michigan Supreme Court ruled that Public Act 75 of 2010, which was in effect from July 2010 to September 2012 and mandated members contribute 3 percent of their compensation to the Retiree Healthcare Fund, was unconstitutional and the member contributions shall be refunded.

To be eligible, members must have worked for LCC at some point between July 2010 and September 2012 and participated in the Retiree Healthcare Fund. If you did not work for LCC during this time or did not participate in the Retiree Healthcare Fund, a refund will not be issued.

What we know NOW:

  • The Office of Retirement Services (ORS) will send the cash and distribution list to LCC around Jan. 22.

  • Payroll will prepare a new earn code for the Health Care Contribution (HCC) refund and test the payroll system during February 2018.

  • The HCC 3 percent refund will be subject to federal, state and city taxes. FICA was withheld on all wages/contributions at the original time of collection and will not be withheld.

  • The ORS is sending an email to each member who is due a refund on or before Jan. 22. This email will tell you the amount you contributed, the amount of accrued interest, and the total amount of your refund for each of the school districts you worked in during that period.

Former employees ONLY:

  • LCC plans to distribute your refund no later than the April 13 pay date.

  • A notice will be mailed to the last known address on file, requesting updated contact information. Please complete the address update, direct deposit form and W-4 tax forms that will be included with the notice and return to the Payroll Department as soon as possible, but no later than March 16.

  • Completed/updated forms can be mailed, faxed or personally dropped off to the Payroll Department. Documents must be received by March 16.

    Lansing Community College
    Payroll - 7000
    309 N. Washington Sq., Suite 203
    Lansing, MI 48933
    Fax: 517-483-1844

    Please do not email your W-4 tax forms. Email is not a safe and secure way to transmit documents that contain social security numbers.

For more information, please see the ORS’ frequently asked questions document.

« Back