Agenda Eligibility –TRS –PERS –Scenarios Retiree Return to Work Forms Open Discussion.

Agenda

Eligibility– TRS– PERS– Scenarios

Retiree Return to Work

Forms

Open Discussion

Eligibility

Eligibility

Membership Eligibility

Three

steps

to successful

eligibility management

Documentation

Determination

Periodic Review

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

Eligibility

TRS

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has not withdrawn their contributions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has withdrawn their contributions

887-55-1111

887551111

441-22-3333

441223333

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(payback withdrawn TRS Plan 1 member contributions)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

Eligibility

PERS

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

KELLY535-11-2222

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

OR

Member chose PERS Plan 3

Membership Chosen

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 2TRS 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

Periodic Review

Documentation

Determination

Periodic Review

Positions Change Review all

less than full time positions

on a regular basis

At least yearly

Eligibility

Periodic Review

Documentation

Determination

SUCCESS

Eligibility

Retirees

Retirees

Definition~

OR

A person receiving a lifetime, defined benefit

Lump sum benefit

A person

becomes a

retiree on their

accrual date

Retirees

Accrual Date~

And

Accrual date is set when a member is eligible to retire

Member must complete the following steps:– File an application with DRS– Terminate employment with all public employers– Sever all contractual agreements for future

employment

313-11-2222

313112222

RetireesMost 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 options1. 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

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

Limits

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

TRS Plan 1 retirees

Limits

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

PERS Plan 1 retirees

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

PERS08/01/03

90 day waiting period

TRS07/22/07

45 day waiting period

Limits

Can work up to 867 hours per calendar year without any reduction in benefit– Must have at least a 30 day break in service

All other Retirees

RetireesCalculations 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

RetireesHours 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

*Must have justifiable need, use the established hiring process, and keep all records.

TRS 1

2 and 3 N/A 30 Days 867 Yearly

< 07/22/07

> 07/22/07

30 days 1500 Yearly

1500 Yearly*

1900 Life45 days

PERS 1 < 08/01/03 1 Month1500 Yearly

1900 Life

2 or 3

> 07/31/03

N/A

30 Days

30 Days

90 Days

867 Yearly

867 Yearly

1500 Yearly*

1900 Life

Plan Retire Date Wait Period Hour Limit System

Eligibility

Scenarios

Scenario A

The Department of Health hires the following person into a half-time eligible position in the Licensing and Certification Section.

535112222

535-11-2222

Clallam County

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

555-11-9999

Revenue Dept of

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

565-55-7878

Licensing Dept of

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 Re-employment 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

5555

Parks & Recreation Commission

Scenario E

Report system/plan?

New Member Plan Choice

PERS Plan 2

Eligibility

Forms

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 Re-employment

Notification of Death

Used to notify DRS if a member, beneficiary or retiree has passed away

Employer mails original form to DRS

Contacting DRS

Thank You

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