Termination Incentive Program Refund FAQ

Frequently Asked Questions

What is the Termination Incentive Plan (TIP) Program?

Beginning January 2010 and ending August 2011 (for a total of 36 payments), all salaried Detroit Federation of Teachers members (except assistant attendance officers, accompanists and members who work less than .50 FTE) had $250 per pay deducted from their pay and deposited into a Termination Incentive Plan (TIP) account. (Deductions were not made for the four (4) summer checks for members on 26 pays – checks numbered 23-26).

Am I eligible for a TIP refund?

Active DFT members (not including assistant attendance officer, accompanist, or members working less than .5 FTE) who were employed with Detroit Public Schools between January 2010 and August 2011 are eligible for a refund.
Additionally, active DPSCD employees who were DFT members between January 2010 and August 2011 are eligible for a refund.
Former employees who did not receive their full TIP payout are eligible to receive the remaining balance.

How much money will I receive?

The district is refunding all remaining TIP funds to current and former employees. Eligible DFT members may receive up to $9,000 in refunds.

When will I receive my money?

The district will repay TIP funds to employees by September 30, 2018 unless the employee elects to contribute the money to a tax deferred plan (TDP). If an employee elects a TDP then the funds will be repaid by March 1, 2019.

Will the refund be taxed?

Yes the refund is taxable income.

How do I have my TIP refund paid into a Tax Deferred Plan (TDP)?

The district will provide more direction in June 2018 for employees to select a TDP. Employees who select a TDP will receive those payments by March 2019.

Can I use my TIP money to pay for years I purchased through MPSERS?

No, unless you are planning to retire within the next 90 days.

Who do I contact with questions?

Submit any questions to tip.refund@detroitk12.org.

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