Transcript Arkansas Public Employees Retirement System presents From Hire to Retire A Complete How-To Guide of Employer Responsibilities.

Arkansas Public Employees Retirement System
presents
From Hire to Retire
A Complete How-To Guide of
Employer Responsibilities
Introduction
Why Are We Here?
Welcome To APERS’
Employer Training
APERS
Presents
Topics
 New Hires



Eligibility /Contributory & Non Contributory
Forms
Ongoing Responsibilities


Day to Day
“The 3 R’s”,




Forms
Other
Retirement


Rev.
02/2007
Remit, Report, Reconcile.
Termination / retirement issues
Forms
APERS
Presents
Note:
Throughout this presentation you will
see this symbol “►”.
By clicking on the “►”, you will see additional
slides on that topic.
These additional subtopics are:

Completing the MDF

The Remittance Form

Reporting Earnings and Service

Manual Reconciliation form

Electronic Reconciliation form
Rev.
02/2007
These subtopics can be found on your CD
and can be viewed as individual PowerPoint
presentations.
New Hires
They’re Hired – Now What?
APERS
Presents
Determine Eligibility

Full-Time or Part-Time?
All employees hired with the intent of
working at least 80 hours per month and
90 consecutive calendar days should be
enrolled in APERS. This includes parttime, temporary and seasonal employees.
Rev.
02/2007
APERS
Presents
Determine Eligibility

Earnings Requirement
The employee’s earnings must also
meet Federal minimum wage guidelines.
Rev.
02/2007
APERS
Presents
Determine Eligibility

Exclusions
Employees who are current members of
or eligible for membership in another
public retirement plan, or are currently
receiving a benefit from APERS are NOT
eligible for enrollment.
Rev.
02/2007
APERS
Presents
Concurrent Employment

Is your employee also working
for another APERS-participating
employer?
Be sure to ask all new employees if they
are currently employed anywhere else
before determining whether they meet
the eligibility requirements.
Contact the APERS Call Center if you
are unsure whether the second employer
is covered by APERS retirement.
Rev.
02/2007
APERS
Presents
Elected Officials of
First Class Cities
Act 1281 (Effective July 16, 2003) requires
that newly elected Mayors and City Clerks
of a first class city who are serving in a
municipality that participates in APERS
shall become participating employees in
APERS unless they opt to participate in the
local retirement plan.
The officials have 90 days after first
assuming office to provide written notice
that they opt to participate in the local
retirement plan. APERS will refund any
matching payments or contributions once
the official has opted out of APERS.
Rev.
02/2007
APERS
Presents
Contributory or
Non-Contributory?

Employees New to An APERS
Employer
Employees hired after July 1, 2005 who have
never worked for an APERS-participating
employer or are returning to work more than
six (6) months after last being reported to
APERS by an APERS-participating employer
MUST be enrolled as contributory members.
Rev.
02/2007
Contributory or
Non-Contributory?
APERS
Presents

Rev.
02/2007
Employees Returning to Work from
A Previous APERS Employer
Employees who terminated from an
APERS-participating employer within the
last six (6) months (and were noncontributory when they left) may choose to
remain non-contributory or may decide to
change to contributory status.
All
employees returning to an APERS-covered
employer within the six month period must
complete a Return to Work for an APERSCovered Employer Form and submit it with
the MDF.
APERS
Presents
New Hire Forms



Membership Data Form
Designation of Beneficiary Form
Return to Covered Employment
Form
There is no waiting period for enrollment into
APERS. If an employee meets the eligibility
requirements, s/he should be enrolled on/as
of the first day of work.
Rev.
02/2007
APERS
Presents
New Hire Forms
Membership Data Form ►
NOTE: The new member will receive a
Member Handbook mailed directly from
APERS once the completed Membership
Data Form has been received.
Rev.
02/2007
APERS
New Hire Forms
Presents
Designation of Beneficiary
Rev.
02/2007

All
Contributory
Employees
Must Complete

Form Must Be
Notarized
APERS
Presents
New Hire Forms
Return to Covered Employment
Only noncontributory
employees who
are returning
within six (6)
months of
terminating from
another APERS
employer should
complete this
form.
Rev.
02/2007
Choose Contrib or
Non-contrib Plan
The employer will complete the bottom
portion of the form and submit it to APERS
with the Membership Data Form.
Reporting
The Three “Rs” –
Remit/Report/Reconcile
APERS
Presents
REMITTING EMPLOYER &
EMPLOYEE
CONTRIBUTIONS
Rev.
02/2007
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions
Employer Rates are determined each fall
based on the most recent actuarial valuation
and are set by the APERS Board of
Trustees.
Employer Rate – 11.01%
Rev.
02/2007
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions

Employee Rate – 5.00%
Employee contributions are deducted “pretax”, meaning that the contributions are NOT
included when the employer calculates
federal and state income taxes on gross pay.
Social Security and Medicare taxes should
be calculated on the full gross pay of the
employee.
Rev.
02/2007
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions

Payment Due Dates/Info
Payments are due to APERS by the 10th
calendar day after the employer’s payroll
processing date*.
Rev.
02/2007
*Payroll processing date is when your
payroll has been calculated and is ready for
checks to be issued – NOT when your
employees are paid.
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions

Payroll Due Dates/Info
Remittances postmarked on or before
the 9th* calendar day will not be
considered delinquent regardless of
when they are received.
Rev.
02/2007
*If the 9th falls on a weekend or a
federal holiday, you have until the next
business day to postmark your
remittance.
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions

Rev.
02/2007
Completing
The Remittance Form ►
APERS
Presents
Remittance of Employer
Matching & Employee
Contributions



Rev.
02/2007
Submit A Separate Remittance
Form for Each Payroll Processing
Date
Reconcile Your Payment using
the Reconciliation Section
Sign the Form
APERS
Presents
REPORTING EMPLOYEE
EARNINGS & SERVICE
Rev.
02/2007
APERS
Presents
Rev.
02/2007
Reporting Earnings &
Service ►
APERS
Presents
RECONCILING THE
MONTHLY REPORT WITH
REMITTANCES
Rev.
02/2007
APERS
Presents
Monthly Report Reconciliation


Excel Spreadsheet Form
Excel Form ►
A step-by-step guide for
the Electronic
Spreadsheet can be
found on the APERS
website at
WWW.APERS.ORG or
in the Employer Guide.

Rev.
02/2007
Manual Form ►
Delinquent Service
I Messed Up – Now What?
APERS
Presents
Delinquent Service


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Rev.
02/2007
What Is Delinquent Service?
Completing the Delinquent
Service Forms
Payment of Delinquent Service
– Employer and Employee
APERS
Presents
Delinquent Service

What Is Delinquent Service?
Delinquent Service occurs when an eligible
employee is not enrolled/reported when hired.
8% interest is calculated on the amount of
employer matching that should have been
paid from the date it was originally due.
It is important
employees are
employee will
contributions in
established.
Rev.
02/2007
to note that since all new
contributory after 7/1/05, the
also owe the delinquent
order for the service to be
APERS
Presents
Delinquent Service

Completing the Delinquent
Service Forms
Forms are available at http://www.apers.org,
on the CD you received at this training session
or in the Employer Guide. You may also
contact the Member Records Unit staff to
assist you in completing the forms.
Rev.
02/2007
APERS
Presents
Rev.
02/2007
Delinquent Service Form
Earnings should be listed by fiscal year (July
through June) with the appropriate service
credit for each month. Member Records staff
will review the forms and will send a letter
specifying the amount due to establish the
service.
APERS
Presents
Delinquent Service

Payment of Delinquent Service
Remit amounts for delinquent service to the
attention of Member Records ( not with regular
payroll remittances). Be sure to include copies
of the Delinquent Service Forms.
Delinquent employee contributions should be
remitted by the employer. It is the employer’s
decision as to whether the employee must
reimburse the employer for the contributions.
In the letter to the employer, Member Records
will denote the date that payments are due to
avoid additional interest.
Rev.
02/2007
Non-Salary Earnings
What to Report/What Not to Report
APERS
Presents
Lump Sum Payments



Vacation Pay When Terminating
Bonuses Not Part of Base Pay
Overtime Pay (NOT PAID DURING THE PAY
PERIOD IN WHICH IT WAS EARNED)
One-time payments to employees are not
eligible to be included in wages reported for
retirement service credit.
Rev.
02/2007
APERS
Presents
Retroactive Wage Increases


Completing the Retroactive
Wage Form
Payment of Matching for
Retroactive Wages
When a retroactive wage increase is given
to your employees, you will need to
complete the Retroactive Wage Form to
indicate which month the wages would have
been earned and reported to APERS.
Rev.
02/2007
APERS
Presents
Retroactive Wage Increases
Completing the Retroactive Wage Form
Retroactive wages
must be
completed on a
month by month
basis for each
fiscal year
involved.
A form must be completed for each
employee who received the retroactive
wage increase.
Rev.
02/2007
APERS
Presents
Retroactive Wage Increases
Payment of Matching and Contributions
for Retroactive Wage Increases
• Remit amounts for retroactive wage
increases to the attention of Member Records
( Not with regular payroll remittances).
• Be sure to include copies of the Retroactive
Wage Increase Form.
• Employee contributions due for retroactive
wage increases should be remitted by the
employer.
• It is the employer’s decision as to whether
the employee must reimburse the employer
for the contributions.
Rev.
02/2007
APERS
Presents
Wage Settlements
Completing the Wage Settlement Form
Rev.
02/2007
APERS
Presents
Wage Settlements
Completing the Wage Settlement Form
• Wage settlements are court-ordered
payments made to employees.
• Wage settlements must be completed
on a month by month basis for each
fiscal year involved.
• A copy of the court order must be
submitted with the Wage Settlement
Form.
Rev.
02/2007
APERS
Presents
Wage Settlements
Payment of Matching and
Contributions for Wage Settlements
• Remit amounts for retroactive wage
increases to the attention of Member
Records. (Do not send co-mingled with
regular payroll remittances).
• Be sure to include a copy of the Wage
Settlement Form.
• Employee contributions due for wage
settlements should be remitted by the
employer.
• It is the employer’s decision as to whether
the employee must reimburse the employer
for the contributions.
Rev.
02/2007
APERS
Presents
Military Service Credit
Employees Returning from Active
Duty Deployment
The Uniformed Services Employment &
Reemployment Rights Act (USERRA)
provides that an employee returning to work
from active duty within the prescribed
guidelines of the law is entitled to retirement
service credit for the time they were deployed.
Employers should obtain a copy of the
DD - 214 form and submit it to the Member
Services Section of APERS for processing.
Rev.
02/2007
Ongoing Employer
Responsibilities
Day to Day Tasks
APERS
Presents
Communication



Rev.
02/2007
Distribute Informational
Materials
Notify Employees of Scheduled
APERS Seminars
Contact Us If You Have
Questions!
APERS
Presents
Ch-Ch-Ch-Changes


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
Change of Name
Change of Address
Change of Beneficiary
Employer Contact Changes
Employer Address/Phone/Email
If an employee notifies your payroll office of a
name or address change, please have them
complete an APERS change of name or
address form so our records will be correct.
Rev.
02/2007
Terminations/Retirements
Going…Going…Gone!
APERS
Presents
Termination of an Employee



Rev.
02/2007
Indicate the termination by placing a
“T” in the appropriate column on the
Earnings & Service Report.
If the employee was contributory and
wishes to have his/her contributions
refunded, both the employee and
employer must complete the
Termination of Employment Refund
Request Form.
The refund request cannot be
processed until the report month
when the employee was last reported
has updated.
APERS
Presents
Termination of an Employee

Completing the Termination of Employment
Refund Request Form
The employee
completes the top
portion of the form
and has it notarized.
Rev.
02/2007
The employer
completes the bottom
box on the form,
indicating when
employment was
terminated and the
last month wages will
be reported to
APERS.
APERS
Presents
Deferred Retirement Option Plan
(DROP)




Rev.
02/2007
Completing the DROP Participant
Earnings Form
Removing the DROP Participant
from the Earnings & Service Report
& Cease Payment of Matching and
Contributions
DROP Participant Employment
Confirmation Report
Retirement from DROP
APERS
Presents
Completing the DROP Participant
Earnings Form
DROPS are always effective on the 1st.
It will normally be
necessary to
calculate partial
earnings/matching
/contributions for
the part of the pay
period before the
DROP effective
date.
Employers may also elect to pay
matching for the entire pay period and
then request a refund from APERS.
Rev.
02/2007
APERS
Presents
Deferred Retirement
Option Plan (DROP)
Removing the DROP Participant from
the Earnings & Service Report/Cease
Payment of Matching and
Contributions
Terminate the employee from the Earnings &
Service Report by placing a “T” in the
appropriate column.
No payments for matching or contributions
should be remitted to APERS once a member
enters the DROP.
Rev.
02/2007
APERS
Presents
Deferred Retirement Option Plan
(DROP) DROP Participant Employment
Confirmation Report
APERS will send this report to employers
each month in the monthly reporting packet.
Rev.
02/2007
DROP participants must be working to
remain in the DROP.
APERS
Presents
Deferred Retirement
Option Plan (DROP)
DROP Participant Employment
Confirmation Report
The employer should:
• Review the listing to ensure that each
DROP participant is still employed
• Sign the form
• Submit it to APERS with your current
monthly Earnings & Service Report.
Rev.
02/2007
APERS
Presents
Regular Retirement



Rev.
02/2007
Employee Responsibilities
Employer Responsibilities
Working After Retirement
APERS
Presents
Regular Retirement

Employee Responsibilities
The employee should:
Request a Retirement Application Packet from
APERS and understand the deadlines for
submitting the application for the month
selected to retire.
Notify his/her employer of retirement date.
Contact your insurance administrator (EBD for
state employees) to set up retiree insurance
deduction(s).
Rev.
02/2007
APERS
Presents
Regular Retirement

Employer Responsibilities
The employer should:
Complete the Employer
Verification of Termination
and Earnings Form to
report anticipated earnings
for the last month the
employee is scheduled to
work.
Rev.
02/2007
APERS
Presents
Regular Retirement

Verification of Termination &
Wages Form
These earnings will be used to
compute the monthly benefit of the
retiring member, so it is important for
the employer to complete and return
the forms accurately and quickly.
Rev.
02/2007
The employer should remove the
retiring member from the Earnings &
Service Report by placing a “T” in the
appropriate column.
APERS
Presents
Regular Retirement

Working After Retirement
APERS retirees may return to work for an
APERS-participating employer 30 days (90
days for elected officials) from their effective
date of retirement.
APERS retirees cannot accrue additional
service credit and should not be enrolled or
reported to APERS.
Rev.
02/2007
Available Tools
Reference Sources
APERS
Presents
Available Tools







Rev.
02/2007
Employer Guide on CD
Board Regulations
Annual Financial Report
Website (http://www.apers.org)
PowerPoint Presentation on CD
Forms Folder on CD
Member Handbook