Transcript Slide 1

Agenda
Eligibility
– TRS
– PERS
– Scenarios
Retiree Return to Work
Forms
Open Discussion
Eligibility
Eligibility
Membership Eligibility
Three
steps
Periodic
Review
Documentation
Determination
to successful
eligibility management
Determination
Determination
Determination
You are responsible for the initial
determination of an employee’s
eligibility for membership
Retirement Status Form
Position Eligibility Worksheet
New Hire Pyramid
TRS
Eligibility
TRS Plan 1
Member
– Person who has established membership and
has not withdrawn their contributions
Former Member
– Person who has established membership and
has withdrawn their contributions
887551111
887-55-1111
441223333
441-22-3333
TRS Plan 1 Members
Report all TRS Plan 1 members regardless of
position on the TRS transmittal from the first day
of employment
TRS Plan 1 Former Members
Hired into a faculty position
A former member of TRS Plan 1 is treated as if they
have never been a member of TRS
If the individual is eligible for HERP coverage they
must join HERP immediately
Less than full-time contracts that are not eligible for
HERP provide quarterly substitute report
– RCW 41.32.013
TRS Plan 1 Former Members
Hired into a non-teaching position
Eligible Position
– Report in HERP if appropriate
Or
– Report in PERS until TRS Plan 1 membership is reestablished
(payback withdrawn TRS Plan 1 member contributions)
Ineligible Position
– Report in HERP if appropriate
– Do not report on transmittal until TRS Plan 1 membership is
reestablished
TRS Plans 2 and 3
A position is eligible if it normally requires five or
more months of at least 70 hours of earnable
compensation during September through August
of the following year
Eligible Position
– Report in appropriate System/Plan
Ineligible Position
– Provide a quarterly report if they are working in an ineligible
position and not contributing to HERP
– RCW 41.32.013
PERS
Eligibility
PERS
The initial determination of eligibility must be based
on the position
– Job share
Employees in an ineligible position cannot be
members
– Employees working in more than one ineligible position
may be eligible for membership
Eligibility can also be determined by the person
PERS
A position is eligible if it normally requires at
least five months each year in which regular
compensation is earned for at least 70 hours
per month
New Position
– Meets eligibility definition for two consecutive years
Existing Position
– Meets eligibility definition during at least one year in any two
year period
PERS
Exempt from Membership
Independent Contractors
– WAC 415.02.110
– Contractor Questionnaire
Current members of Higher Education Retirement
Plans (HERP)
Student and spouse of student
– WAC 415-108-520
PERS Options
New Member Plan Choice
Transfer Option
Membership Chosen
New Member Plan Choice
New to PERS on or after March 1, 2002
Member has up to 90 days to make their plan choice
between PERS Plan 2 and PERS Plan 3
Member defaults to PERS Plan 3 at the end of 90
days
– WSIB
– Rate option A, 5%
90 Day Report
San Juan Island SD
New Member Plan Choice
Report member in PERS Plan 2 on the first
transmittal
– Unless member chooses a plan before payroll cutoff
 Begin date
 Choice date
Submit plan choice record via the transmittal after the
Member Information Form (MIF) is received
– Plan choice date (the date member signed the form)
– Plan choice code
 2C
 3C
 3D
535112222
535-11-2222
KELLY
Transfer Option
Established PERS Plan 2 membership prior to
March 1, 2002
Option to transfer to PERS Plan 3 in January
Report in PERS Plan 2
Plan transfer code
– 3X
Membership Chosen
Member chose PERS Plan 2
– Report member in PERS Plan 2
– May never transfer to PERS Plan 3
123456789
123-45-6789
CASEY
Membership Chosen
Member chose PERS Plan 3
OR
Member defaulted into PERS Plan 3
– Report member in PERS Plan 3
– 90 days to choose investment program and contribution rate
– Default
 WSIB
 Rate option A, 5%
– Report only employer contributions until MIF is received or
member defaults
 Member contributions from date of choice/default forward
544113232
544-11-3232
JEREMY
Plan 3 Lost Earnings
If employer misses a deduction, deduct double on
the next reporting period
Potential for lost earnings
– Be consistent with application
– Employer or member can notify DRS
PERS Plans 1 and 2
TRS Plan 2
A member of PERS Plans 1, 2 or TRS Plan 2 who
have withdrawn their contributions are treated as if
they have never been a member of PERS or TRS
If the individual is eligible for HERP coverage they
must join HERP immediately
PERS and TRS Plans 3
A member of Plan 3 who has withdrawn their
contributions is still considered a member of PERS or
TRS
– Plan 3 withdrawn members can still have rights to a Defined
Benefit
– WAC 131-16-031
If the individual is eligible for HERP coverage and
working in an eligible position (PERS/TRS) give them
a choice
– WAC 131-16-031
– “Page 9”
Documentation
Documentation
Determination
Position Management
Determine what positions you have
Assign each position a unique identifier
– Numbering systems
Track each position
– Determine the position’s eligibility by reviewing the number
of hours worked under each unique identifier
Documentation
All determinations of position eligibility should be
documented
– Numbering system
– Position Eligibility Worksheet
Determinations must be kept and maintained in a
separate file for 60 years
– Per established archival retention schedule
– Payroll register and timesheets
Periodic Review
Documentation
Determination
Periodic
Review
Periodic Review
Positions
Change
Review all
less than full
time
positions on
a regular
basis
At least
yearly
Eligibility
Documentation
SUCCESS
Determination
Periodic
Review
Retirees
Eligibility
Retirees
Definition~
A person receiving a lifetime, defined benefit
OR
Lump sum benefit
Retirees
Accrual Date~
Accrual date is set when a member is eligible to retire
And
Member must complete the following steps:
– File an application with DRS
– Terminate employment with all public employers
– Sever all contractual agreements for future
employment
313112222
313-11-2222
Retirees
Most retirees are limited in the amount of hours
they can work and still received their pension
from DRS
– Employers are responsible for correct reporting of
compensation and hours
– Retirement Status Form
 Verify status via MRV
 RCW 41.50.139
Retirees
LEOFF Plan 2 Retirees may 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
Retirees
All retirees must be reported to DRS
Report under Plan 0
Report in system applicable to their current position
Report appropriate begin and end dates
Report appropriate type code
Eligibility rules are the same for all positions
Retirees
Contributing to HERP
– 97 for TRS
– 99 for PERS
– Need email to set flag if contributing to HERP
98 Eligible Position
– Compensation and hours required
99 Ineligible Position
– Compensation and hours are optional
Retirees
Members cannot have an agreement to return
to work prior to their retirement accrual date
Most retirees must have at least a 30 day break
in service from their accrual date
Retirees’ benefits are suspended if they work
over their annual limit
– DRS notifies both member and employer
– Benefits re-start upon separation or beginning of new
calendar year
Limits
TRS Plan 1 retirees
From July 22, 2007 forward can work up to 1,500
hours per fiscal year without any reduction in
benefit
– Must have at least a 45 day break in service
– Employer must document a justifiable need to hire the
retiree “pursuant to a writing policy”
– Must be hired through the employer’s established
process
– Employer keeps a record of the hiring process and
decisions made for access by DRS when necessary
Limits
PERS Plan 1 retirees
Prior to August 01, 2003 can work up to 1,500
hours per calendar year without any reduction
in benefit
– Must have at least a 30 day break in service
– Employer must document a justifiable need to hire
the retiree “pursuant to a writing policy”
From August 01, 2003 forward can work up to
867 hours per calendar year without any
reduction in benefit
Limits
TRS and PERS Plan 1 retirees have a lifetime
limit of 1,900
Employer must document a justifiable need to
hire the retiree “pursuant to a written policy”
Must be hired through the employer’s
established process with approval by your
highest authority
Employer must keep a record of the hiring
process and decisions made for access by
DRS when necessary
TRS
07/22/07
45 day waiting
period
PERS
08/01/03
90 day waiting
period
Limits
All other Retirees
Can work up to 867 hours per calendar year
without any reduction in benefit
– Must have at least a 30 day break in service
Retirees
Calculations for benefit limits are based on the
hours reported with type code 98
– Report B codes for months with no compensation
and hours
Employer contributions are due on retirees
who exceed 867 hours
– Invoice will be sent the first of the following month
back to the first hour of employment
Retirees
Hours associated with the following types of
compensation are counted against the annual limit
– Actual hours worked
– Vacation/sick leave used
– Paid Holiday
Vacation and personal leave cash outs do not count
against the annual limit
Retirees
Plan
System
PERS
1
Retire Date
< 08/01/03
Wait Period
1 Month
Hour Limit
1500 Yearly
1900 Life
> 07/31/03
30 Days
90 Days
867 Yearly
1500 Yearly*
1900 Life
2 or 3
TRS
1
N/A
30 Days
867 Yearly
< 07/22/07
30 days
1500 Yearly
> 07/22/07
45 days
N/A
30 Days
1500 Yearly*
2 and 3
1900 Life
867 Yearly
*Must have justifiable need, use the established hiring process, and keep all records.
Scenarios
Eligibility
Scenario A
The Department of Health hires the
following person into a half-time
eligible position in the Licensing and
Certification Section.
535112222
Clallam County
535-11-2222
Scenario A
Report system/plan?
PERS Plan 2
Scenario B
The Department of Revenue hires the
following person into an eligible
position in the Property Tax
Department.
555-11-9999
Revenue Dept of
555-11-9999
Scenario B
Report system/plan?
PERS Plan 3
Scenario C
The Department of Licensing hires the
following person into an eligible position
for the Information Services
Department.
565-55-7878
Licensing Dept of
565-55-7878
Scenario C
Report system/plan?
Optional
LEOFF Plan 2 retirees must choose between two
options
Become a member of PERS and temporarily suspend
their LEOFF retirement benefit
Remain retired and continue to receive their LEOFF
retirement
Must complete the LEOFF Plan 2 Retiree Reemployment Form
Scenario D
DSHS hires the following person into an
eligible position in the Budget
Department.
Scenarios
565-55-7878
565-55-7878
Scenario D
Report system/plan?
TRS Plan 1
Scenario E
The State Parks and Recreation
Commission hires the following person
into an eligible position to work as a
Park Aide.
Scenarios
536-56-5555
Parks & Recreation Commission
5555
Scenario E
Report system/plan?
New Member Plan Choice
PERS Plan 2
Forms
Eligibility
Retirement Status
Employers must elicit
information from all new
employees
(RCW 41.50.139)
Employer keeps this form
Member
Information
New to PERS
Plan 2 transferring to Plan 3
Plan 3 returning to eligible
employment choosing a
new rate
Member signs and returns
form to employer within 90
days of begin date
Employer mails original
form to DRS only if Section
2 is required
Beneficiary
Designation
Used to document
beneficiary information in
case of death
Separate $150,000 death
benefit option
Send form to DRS
Plan 3 Change of Investment
Program
Used to document
member’s change of
investment program
Member signs and returns
form to employer
Employer keeps this form
LEOFF 2 Retiree Reemployment
Used for LEOFF 2 RRTW in
an eligible position
– Excludes LEOFF positions
Member must choose
between 2 options
Member signs and returns
form to employer
Employer mails original to
DRS
Notification of Death
Used to notify DRS if a
member, beneficiary or
retiree has passed away
Employer mails original form
to DRS
Contacting DRS
DRS Web Site
– http://www.drs.wa.gov
E-mail
– [email protected]
Telephone
– Local 360-664-7200 (option 2)
– Toll free 1-800-547-6657 (option 6 then option 2)
Fax
– 360-753-1090
Thank You
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