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 (up to $9,000.00 in contributions) 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 contributed 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. Eligible members may receive their contributed amount up to $9,000.
When will I receive my money?
The district will repay TIP funds to employees by September 28, 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 December 21, 2018.
Will the refund be taxed?
Yes, the refund is taxable income; unless the funds are contributed to TDA or TDP.
How do I have my TIP refund paid into a Tax Deferred Plan (TDP)?
Employees who elect to use their TIP funds to pay a TDP, must submit the Payoff Payment Options for a TDP form to Office of Payroll by September 7th.
Can I use my TIP money to pay for years I purchased through MPSERS?
Yes, only if you’re retiring with in 90 days.
Who do I contact with questions?
Submit any questions to firstname.lastname@example.org.