MnSCU Retirement Plans
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Transcript of MnSCU Retirement Plans
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The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
MnSCU Retirement Plans
Basic Training for Campus HR Administrators
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Planned Modules:
• Module 1: Retirement Plan Concepts
• Module 2: Eligibility for Primary Plans
• Module 3: Reporting in SCUPPS
• Module 4: SRP: Eligibility and Coding
• Module 5: Forms Completion & Processing
• Module 6: Phased Retirement Programs
• Module 7: Voluntary Retirement Programs
• Module 8: Retirement Plan Distributions
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Objectives: SRP Eligibility and Coding
• Statutory language
• Discussion of coverage
• Who is eligible?
• Bargaining Contract/ Personnel Plans contribution limits
• Certifying eligibility/coding processes– Resources/reports to help determine eligibility
– SCUPPS SEMA4 data transfers
• Contribution adjustments
• Resources
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MnSCU Retirement Plans
Minnesota State Colleges & UniversitiesRetirement Plans
Mandatory PlansParticipation is determined
by bargaining unit/employee unit
Voluntary PlansOpen to all employees
Defined Benefit Defined Contribution 457(b) Deferred Compensation Plan
403(b) Tax Sheltered
Annuity Plan
TSA
Minnesota State
Retirement System
MSRS
Teachers Retirement Association
TRA
401(a) Individual Retirement
Account Plan IRAP
401(a) Supplemental Retirement
Plan
SRP
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SRP: Statutory Origins
• Why do we have SRP?
• Minnesota Statutes, Chapter 354C outlines these provisions:– Coverage and eligibility
– Salary deductions and matching employer contributions
– Additional deductions and contributions as allowed under other law
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SRP Coverage
• SRP is a MnSCU-specific retirement plan
• Coverage by SRP (mandatory plan):– Unclassified position (Administrator, IFO,
MSCF, MSUAASF, unclassified MAPE/MMA, or unclassified in Commissioners Plan)
– Same as eligibility for IRAP; see classification list at:
http://www.hr.mnscu.edu/Classification/UnclassifiedCodes.html
• Unclassified “rule 10” positions are not covered by SRP
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SRP Eligibility
• Service is aggregated across all MnSCU institutions
• Service is aggregated across all eligible unclassified appointments
• Predecessor entity employment counts:– Former State University System, Community
College System, or Technical College System
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SRP Eligibility (cont’d.)
• Completed two fiscal years of full-time, unclassified eligible service within MnSCU
• Exclusive of summer session for faculty
• Faculty must have 1.0 FTE or greater
• Administrators and professional employees must have an assignment of at least ten months at 100% time within the fiscal year
• Unpaid leaves don’t count (with exception of unpaid military leave)
• “Once in, always in”
• Does not need to be consecutive service
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SRP Eligibility (cont’d.)
• Retirees are not eligible for SRP coverage
• Retirees for this purpose are defined as those who are currently drawing an annuity from a defined benefit plan or those who have started a distribution from their defined contribution plan
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SRP Contribution Limits
• Statutory language (minimum; M.S.354C)– 5% ee contribution after $6,000 in paid salary
per fiscal year contribution continues until $15,000 is paid in fiscal year
• “paid” vs. “earned” concept
– 5% er match
– $15,000-$6,000 = $9,000 salary payment
– $9,000 @ 5% = $450
• Statutory language (maximum)– $2,700 (M.S.356.24)
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SRP Contribution limits
• Bargaining Agreement/Personnel Plan language determines maximum limit
• Maximum limit is $2,700 for ee with a $2,700 er match
• Only plan at maximum is MnSCU Administrator’s Plan
• Different limits in different fiscal years
• List is on the HR web site:http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf
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SRP Contribution limits (FY2009)
Unit: Contract/Plan Salary limit
Contribution Amt.
MSCF (unit 210) $56,000 $2,500
IFO (unit 209) $51,000 $2,250
MSUAASF (unit 211 $50,000 $2,200
Administrators (unit 220)
$60,000 $2,700
Unclassified MAPE (unit 214)
$40,000 $1,700
Unclassified MMA (unit 216)
$40,000 $1,700
Unclassified Commissioners Plan (unit 217)
$40,000 $1,700
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SRP Coding Processes
On each Job Record, there must be:
• An effective date
• An SRP eligibility code,– And, if eligibility is yes, then
• An SRP deduction code
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SRP Coding Processes
Effective Date Tips:
• Newly eligible are always effective July 1st
• Correcting or Changing the SRP deduction code for an employee who is already eligible:– Always the 1st day of the June payroll that
generates a paycheck on or after July 1st
– Example: this year, June 10th is the first date of the June payroll period paid on July 2nd
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SRP Coding Processes
• SRP Eligibility Codes are available on the MnSCU HR web site:
http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Eligibility%20_Codes.pdf
• SRP Deduction Codes are available on the MnSCU HR web site:
http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf
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SRP Coding Processes
• Review currently eligible employees also:– Compare current deduction code with current
bargaining unit, change if needed
– Run Reconciliation Reports in Hyperion
• Subsequent unclassified job assignments (e.g., switch from faculty to administration, MAPE to faculty, etc.)– Use deduction code for the bargaining unit of
the active assignment on October 1
– Any movement after 10/1 does not change SRP
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SRP Coding Processes
• Multiple active part-time assignments in different unclassified bargaining units– If both assignments are in the bargaining unit,
use deduction code for the bargaining unit that has the greater SRP contribution limit
– If one or more assignments are in a single bargaining unit, and the remaining assignments are as 218, use the deduction code for the bargaining unit position
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SRP Coding Processes
SRP Decision Making Flowcharthttp://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP%20Flowchart.pdf
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SRP Coding Processes
Special Issues for MAPE, MMA and Commissioner’s Plan employees:
• Deferred Compensation Plan employer match or SRP coverage – – cannot have both
• Change Salary Authority fields in SEMA4
• Must be changed on both employee Job Data panel and in Position Management
• SEMA4: On Demand Reports > Payroll > FIHU1650 MnSCU_DC_Match_Supp
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SRP Coding Processes
• All data and new coding must go thru SCUPPS to SEMA4 interface process
• Follows normal deadlines
• Be certain to run and review the HR7010 report
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SRP Contribution Adjustments
• Missed Deductions must be made up:– Under 60 days old
– Over 60 days old; ER must pay for ER and EE contributions plus interest
– Under 60 days old, but no future paychecks
– All forms are on the MnSCU HR web site
• If not paying by electronic fund transfer, – Remittance Voucher form that should be sent
with the check, on the MnSCU HR web site
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SRP Resources
• SRP Step by Step Process, on the web
• Hyperion Queries:– Links within the Step by Step Process
– Also Reconciliation Reports
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SRP Resources
• Expand Institutional FTE on Job Panel in SCUPPS, shows multiple institutions
• Run the multi-campus report
• “Welcome to SRP” letter to newly eligible employees, on the MnSCU HR web site
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Module 4: SRP: Eligibility & Coding
Questions?