Agenda 1 Eligibility –SERS –TRS Membership Determination Substitutes Retirees Reportable...
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Transcript of Agenda 1 Eligibility –SERS –TRS Membership Determination Substitutes Retirees Reportable...
Agenda
1
Eligibility– SERS– TRS
Membership Determination
Substitutes
Retirees
Reportable Compensation
Transmittal Reporting– Codes– Edit Messages
DRS Web Site
2
Employer Responsibilities
The initial determination of an employee’s eligibility for membership– Identify what positions you have– Assign each position a unique identifier
Documenting your decision regarding positions eligibility– Position Eligibility Worksheet– 60 years per established archival retention schedule
• http://www.secstate.wa.gov/archives/gs.aspx
Reporting all eligible employees from the first day of eligibility
3
Employer Responsibilities
Regularly reviewing the determinations you made– At least annually– Non-eligible positions
Timely and accurate reporting of transmittals and corrections
4
5
Eligibility
6
Eligibility
The initial determination of eligibility must be based on the position– Job share
Eligibility can also be determined by the person– Employees working in more than one ineligible
position within the same district
7
Eligibility Definition-TRS Plan 1
Member– A person who has established membership but
has not withdrawn their contributions
Former Member– A person who has separated from service and
has withdrawn their contributions
8
Eligibility Definition-TRS Plan 2 & 3
9
A position is eligible if it normally requires a least five months each year in which regular compensation is earned for 70 hours per month
Eligibility Definition-SERS & PERS
New position– Meets eligibility definition for two consecutive years
Existing position– Meets eligibility definition during at least one year in any two
year period
10
A position is eligible if it normally requires a least five months each year in which regular compensation is earned for 70 hours per month
11
Position Eligibility Worksheet
Evaluation and periodic review sections
Position title and unique identifier
Employee signature acknowledging determination
Employer keeps form
12
Membership
13
Retirement Status
Information required by law
Documents member’s information and status
Employer keeps form
Member Reporting Verification
14
Member Reporting Verification
15
511223344
511-22-3344
16
536-56-1111
536-56-1111
536561111
536561111
17
18
887-55-1111
887551111
TRS Plan 1 Member
Contract is 20 days or more– Report as active in TRS 1– Type code 71
19
Report all TRS Plan 1 members
20
Contract is less than 20 days– Report as substitute in TRS 0– Type code 80
TRS Plan 1 Member
21
441-22-3333
441223333
TRS Plan 1 Former Member
Employee re-establishes membership in TRS 1– Full time contract for 90 calendars days or more
• Report from the first day of contract
• Report as active in TRS 1
• Type code 71
22
Certificated position (TRS)
TRS Plan 1 Former Member
– If not given a contract for 90 calendar days• Report as a substitute in TRS 0
• Type code 80
23
Certificated position (TRS)
TRS Plan 1 Former Member
Eligible position– Report in SERS until TRS Plan 1 membership is
re-established• By paying back member contributions
– Type code 32
24
Classified position (SERS)
25
TRS Plan 1 Former Member
Ineligible position– Report as a substitute in SERS 0– Type code 39
Classified position (SERS)
2626
538012222
538-01-2222
2727
538012222
538-01-2222
28
TRS Plan 1 Former Member
Classified position (SERS)
Prior PERS Plan 1 membership– Report in PERS plan 1
29
558190000
558-19-0000
TRS Plan 2 & 3
Eligible position– Report as active in TRS 2 or TRS 3– Type code 71
30
TRS Plan 2 & 3
Ineligible position– Report as substitute in TRS 0– Type code 79
31
32
522961111
522-96-1111
SERS Plan 2 & 3
Eligible position– Report SERS 2 or 3– Type code 32
33
SERS Plan 2 & 3
Ineligible position– Report as substitute in SERS 0– Type code 39
34
35
538012222
538-01-2222
PERS Plan 1
Eligible classified position– Report in PERS 1– Type code 18 (ESD’s type code 30)
36
Ineligible position– Do not report
Eligible certificated position– Report in T0
– Type code 79
TRS and SERS Plan 3 Options
Transfer
New Member Plan Choice
Membership Chosen
37
Transfer Option
Who– TRS Plan 2 members hired prior to July 1, 1996– SERS members with previous PERS Plan 2 history prior
to August 1, 1999
When– Option for a one time transfer to Plan 3 in January of
each year
How– Report in plan 2 initially– 3X– Member Information form dated in January
38
39
536-56-5555
536565555
Renton SD
New Member Plan Choice
Who– New to TRS on or after July 1, 2007– New to SERS after August 1, 2009
When– Member has 90 days to make a choice between
Plan 2 and Plan 3
How– Report in Plan 2 on first transmittal
• Unless member chooses a plan before payroll cutoff
40
New Member Plan Choice
How– Submit plan choice record via the transmittal after
the Member Information form (MIF) is received• Plan choice date (date member signed form)
• Plan choice code– 2C– 3C
– Member defaults to plan 3 at the end of 90 days• Default date is the 91st day
• Plan choice code– 3D
41
42
537102334
Tumwater SD
43
Port Angeles SD455-66-9999
455-66-9999
Tumwater SD
455669999
Membership Chosen
Who– A member who has previously chosen a plan
• Plan 2 or Plan 3
– A member who has defaulted to Plan 3
When– Member may not transfer or choose a different
plan
44
Membership Chosen
How
– Report in Plan 2
45
Plan 2
– Report in Plan 3– 90 days to choose an investment program and rate
option• Default WSIB, rate option A
– Report only employer contributions until a MIF is received or member defaults
• Member contributions from date of choice forward
Plan 3
46
420-88-1212
420881212
47
537942222
2222
48
088-99-4444
088994444
49
Substitutes
50
Substitutes
SERS substitute– A classified employee employed as a substitute for
an absent employee– A classified employee working in an ineligible
position• WAC 415-110-010(9)
TRS substitute– A certificated employee hired as a temporary
teacher– A certificated employee working in an ineligible
position• RCW 41-32-010(36)
51
Substitute Reporting
Report under Plan 0 in the appropriate system– TRS 0– SERS 0
Type Codes– 39 for SERS – 79 for TRS 2 and 3– 80 for TRS Plan 1
Do not report “B” codes
52
Substitute Reporting
Report begin and end dates when a member’s status changes– Substitute to eligible– Eligible to substitute
Report member as either eligible or substitute (never both within the same month)– Any earnings reported for an eligible position
makes the entire month eligible
53
Substitute Reporting
PERS Plan 1– Not reported– If position becomes eligible
• Report as PERS 1
SERS and TRS– Report with appropriate type code– Provide Substitute Fact Sheet– Quarterly notification
• Member Reporting Verification (MRV)– September 2004 forward
54
55
Retirees
56
57
Retirees
Must be reported to DRS
Report in the system applicable to their current position
Report under Plan 0
Report begin and end dates
Report appropriate type code
Report “B” codes for months with no compensation and hours
Eligibility rules for each plan remain the same for retirees 58
Retirees
TRS Plan 1 – 97 for all employment
• Compensation and hours are required
All other retirees:– 98 Eligible position
• Compensation and hours required
– 99 Ineligible position• Compensation and hours optional
59
Type Codes
60
414887171
414-88-7171
Retirees
LEOFF Plan 2 Retirees must choose between two options
1. Become an active member and temporarily suspend their LEOFF retirement benefit
2. Remain retired and continue to receive their LEOFF retirement benefit
Must complete the LEOFF Plan 2 Retiree Re-employment form
61
62
LEOFF Plan 2 Retiree Re-employment form
Two options
Member signs and returns form to employer
Employer mails original to DRS
63
111892525
111-89-2525
Retirees-LEOFF
Must have a break in service from a LEOFF employer
No hourly limits
64
Retirees-TRS, PERS and SERS
Limited in the amount of hours they can work and still receive their pension– Employers are responsible for correct reporting of
compensation and hours– Retirement Status form
• Verify status via MRV• RCW 41.50.139
Cannot have an agreement to return to work prior to their retirement date
Must have a 30 day break in service from their accrual date
65
Retirees-TRS, PERS and SERS
Accrual Date– Accrual date is set when a member is eligible to
retire
66
– An application has been filed with DRS– Employment is terminated with all public
employers– All contractual agreements for future employment
are severed
And
Retirees-TRS, PERS and SERS
Plan 1– 1500 hours per year– 1900 lifetime
Plans 2 and 3– 867 hours per year
2008 Early Retirement Factors
67
Limits
Retirees-TRS, PERS and SERS
Option at time of retirement– 30 years of service– Age 55
RRTW rules are different– Immediately suspend benefit
• Until age 65
Contractor Status form– Directly compensated– MRV
Effective 09/01/0868
2008 Early Retirement Factors
69
Contractor Status
Verifies if an independent contractor, who is directly compensated, has retired under the 2008 Early Retirement Factors
Employer notifies DRS
Employer keeps form
form
70
533-78-1111
533781111
Retirees-TRS, PERS and SERS
Benefits are suspended if they work over their annual limit– DRS notifies both employer and member– Benefits re-start upon separation or beginning of
new year• Fiscal year or calendar year
Calculations for benefit limits are based on hours reported with type codes 97 or 98
71
Retirees-TRS, PERS and SERS
Hours associated with the following types of compensation are counted against a retiree’s annual limit– Actual hours worked– Vacation and sick leave used in lieu of a
scheduled day – Paid holiday
Vacation and personal leave cash outs are reportable, but do not count against the annual limit– Employer will be billed for contributions
72
73
Works 1500 hours
Works 700 hours
Works 1800 hours
Works 1000 hours
Works 1500 hours
1900 lifetime limit bucket
633
633
133
Pension suspended at 1368
501
Years
1
2
3
4
5 6331266
13991900
8671500
74
Works 1500 hours
8671500
1900 lifetime limit bucket
633
633
Pension suspended at 868
633
1
1
2
3
4
633126618991900
Works 1500 hours
Works 1500 hours
Works 1500 hours
Years
5 Works 867 hours
75
Reportable Compensatio
n
Reportable Compensation
76
Reportable Compensation
Based on RCWs and WACs
Used to calculate retirement contributions
Used to calculate retirement benefits
Not all salary or wages are reportable to DRS
Based on the nature of the payment
Report as earned
77
Reportable Compensation
Was the payment earned as salary or wage for services rendered?– No: Payment is not reportable– Yes: Ask the next question
Was the payment paid by the employer to the employee?– No: Payment is not reportable– Yes: Payment may be reportable
78
79
80
Transmittal
Reporting
81
Transmittal Codes
Status Codes– Alphabetical– Determine service credit– Determine retirement benefit– Report only one status code per transmittal line
Type Codes– Two-digit number– Identifies type of employer– Identifies type of job performed– Determine contributions
82
Transmittal Codes
Correct reporting of transmittal codes helps ensure:– Member contributions and interest are calculated
and posted accurately– Member benefits are calculated correctly
Current reporting
Cash outs– Active members– Retiring members
83
84
Transmittal Reporting
Compensation must be identified by the month and year in which it is earned
The information submitted on the transmittal report is edited for accuracy
A Transmittal Edit Report is sent or is available online which lists the errors found and the actions taken– Snapshot in time– Notifies if information has not been reported
85
Transmittal Reporting
86
If a problem is discovered the transaction may be:– Rejected– Corrected– Left as is
Transmittal Reporting
87
Rejection
The transaction creates an error or the system cannot determine the desired outcome so the transaction is rejected and not posted to the account
533-58-0888 Quinn, Lauren
Defined Benefit: Earn Per: 200707 Compen: 351.18- Mbr contr: 3.09- Employr Contr: 6.21-
Status: A Type Code: 32 Hours: 22.4- Days: 0
Rejected: The sum of the transactions on this report would create a negative balance of hours or days for the earning period being reported. Resubmit with the correct information.
88
Transmittal Reporting
89
Information Changed
The transaction reported is incorrect but the system can determine the problem and adjusts accordingly. The adjusted transaction is posted to the account
71
Transmittal Reporting
90
Warning
The transaction appears questionable, but is within allowable limits and is accepted and posted.
123 45 6789 Quinn, Lauren
Defined Benefit: Earn: 201007 Compen: 10035.62 MBR Contr: 602.14 Employer Contr: 616.19Status: A Type Code : 71 Hours: Days: 30
Warning: Reported Compensation is greater than $10,000 (or less than -$10,000). Please verify and correct if necessary. Cashouts require a Status Code other than “A”.
Transmittal Reporting
Member can’t withdraw their contributions– Funds will not be released
• DRS
• Third party administrator
Pension benefits can’t be finalized
Pension can’t be started for RRTWs
Other employers may report incorrect data91
Separation Dates
92
DRS Web site
93
94
Contacting DRS
Email– [email protected]– [email protected]
Telephone– Local 360-664-7200– Toll free 1-800-547-6657 (option 6)
• Option 1 for Accounts Receivable• Option 2 for Employer Support
DRS Web site– http://www.drs.wa.gov
95
96
Thank You
Document the need and keep all records pertaining to the hiring the retiree
Have a written policy with an established process for hiring retirees with approval from the appropriate level of authority