2025 School Update: Section 147g MPSERS 3% Health Care Premium Subsidy

Section 147g allocations have been based on prior year data and were included in districts’ February 2025 State School Aid payments.  Districts should begin reimbursing eligible employees with their actual, current fiscal year 3% health care subsidy contributions, even though the Section 147g allocations may not yet match actual contributions.   

Actual allocations may be more or less due to differences in the number of employees or changes in payroll from prior to current years.  Section 147g payments are likely moving from a monthly (1/11th) schedule to a quarterly payments schedule, similar to Section 147e, as current year payroll data is available.

MDE guidance to properly record Section 147g is that it should mirror existing Section 147c revenues and expenditures. This is not a “district expense,” and therefore, it is imperative that an equal amount of revenues and expenditures are recorded by the district. These funds are restricted State revenue, Major Class 312, Suffix 0000.  

Districts should account for these reimbursements using their various functions along with Object Code 2820 – Retirement Benefits.  Districts should ensure Section 147g amounts paid to employees have proper tax treatment applied, and they should track appropriately.   

A single function should not be used to record these expenses, as the reimbursements are being paid to employees across several functions. In addition, grant codes are not required for these payments, similar to other 147 funding. 

Maner’s education team is monitoring these and other crucial accounting and audit updates. If you have any questions, let us know by getting in touch at maner@manercpa.com or calling us at 517.323.7500.