SMC board chair provides answers for tax payers

Published 8:28 am Monday, March 5, 2018

I’m sure that taxpayers were as shocked as the college was when the Michigan Office of the Auditor General released a report last week condemning Southwestern Michigan College for not enrolling part-time students who work on campus into the teachers’ retirement system.

At the Feb. 26 SMC Board meeting I promised to respond to the taxpayers on this item.  Here are the facts:

Like other community colleges, SMC does not enroll student workers into the teachers’ retirement system. This is certainly not a secret. This determination has been made based on direct guidance from the Office of Retirement Services. This is also consistent with state and federal mandates that these workers not be enrolled in the unemployment insurance system or the Social Security withholding system.

In fact, the ORS was specifically advised in 2011 of the college’s practices regarding part-time student workers. The ORS confirmed to the College that it was acting in compliance with the retirement statute. Moreover, in 2016 the ORS itself conducted an audit and found no issues of noncompliance for these student workers.

The fact that legislation has already been introduced in both the Michigan House of Representatives (HB 5679) and Michigan Senate (SB 888) to clarify once and for all that part-time students should not have to pay into the state teachers’ retirement system proves how unwarranted the charges of wrongdoing are.

We will provide you with updated information on this issue on the SMC taxpayer information pages of our website at swmich.edu/taxpayer-information, which may also be found in main menu navigation of the college’s website under “About SMC.”

Thomas F. Jerdon

Dowagiac