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has not withdrawn their contributions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has withdrawn their contributions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– drsemployer@drs.wa.gov– drsar@drs.wa.gov

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