Supervisor Group Update

Supervisor Group UpdateSeptember 27, 2011Alumni Room

Agenda Employee Handbook

Life Event Form

Personnel Action Form (PAF)

Retirement/Resignation LDOW

Electronic Timekeeping

Human Resources Council (HRC) Retirement/FICA Changes Veteran’s Preference Honor Guard HDHP Health Plan

Employee Handbook Replaces the

Employee Information Book

Currently found: Employee Services Page

Life Event Form Purpose is for Life Changing Events

Information on Employee Services Page

Personnel Action Form Purpose is for any Personnel Actions

Retirement/Resignation (LDOW)

Last day of Work (LDOW) Last date the employee actually performs

work

Policy Rewrite to occur this AY

Electronic Timekeeping

Salaried

Hourly (Staff)

Hourly (Students

)

Electronic Timekeeping Timeline

Approved

Electronic Timekeeping

Hourly (Staff)

Hourly (Students

)

Salaried

Exception Time Sick Time Vacation Time Etc.

Manager Self Services Absence Management (2013)

Electronic Timekeeping

Hourly (Staff)

Hourly (Students

)

Salaried

Tracking Time Decentralized? Home Grown? Kronos?

One-Card System

Retirement/FICA Changes NDPERS/TIAA-CREF Meeting

October 12th – Skoal Room

Veteran’s Preference Absolute Preference Number Interviewed

Honor Guard 24 working hours of leave Strongly encouraged

HDHP Health Plan All Employees

October 20th Meeting – Vangstad Auditorium

Human Resources Council (HRC)

January 1, 2012 Payroll Changes Impacting Employee Take Home Pay

SOCIAL SECURITY The one-year payroll tax holiday created under The Tax Relief, Unemployment Insurance

Reauthorization, and Job Creation Act of 2010 expires on December 31, 2011.

As an employee in calendar year 2011 your payroll tax contributions were reduced:

From: 6.2% To: 4.2%

Beginning January 1, 2012, employee contributions for Social Security will once again be 6.2%.

Note: On September 8, 2011 the American Jobs Act of 2011 was proposed by President Obama. If passed, the employee Social Security tax rate will be reduced to 3.1% for calendar year 2012.

RETIREMENT The 2011 North Dakota Legislative Assembly passed legislation and provided funding to increase

retirement plan contributions for all state employees by: o 2% on January 1, 2012, and 2% on January 1, 2013. o Of the annual 2% increase, 1% to be paid by the employee and 1% paid by the employer.

NDPERS 2011 2012 2013

Employer 9.26% 10.26% 11.26% Employee 0.00% 1.00% 2.00%

TIAA-CREF 2011 2012 2013 Years of Service 0-2 2-10 10+ 0-2 2-10 10+ 0-2 2-10 10+ Employer 4.50% 9.50% 10.00% 5.50% 10.50% 11.00% 6.50% 11.50% 12.00% Employee 0.50% 1.50% 2.00% 1.50% 2.50% 3.00% 2.50% 3.50% 4.00%

Both PERS and TIAA-CREF plan participants benefit from this change.

Employee contributions will be deducted on a pre-tax basis, reducing the employee’s federal and state taxable gross income and income tax withholding.

There was no sunset clause (ending period) in this legislation, so pending additional legislation it is anticipated these retirement increases will be ongoing.

SUMMARY Beginning January 1, 2012 a total of 3% of employee take home pay will be redirected to Social Security (2%) and retirement (1% employee contribution). Beginning January 1, 2013 an additional 1% of employee take-home pay will be redirected to retirement (1% employee contribution).

Employer retirement contributions will also increase by 1% in calendar year 2012 and another 1% in 2013. Both the employee and employer retirement contributions will be set aside on the employee’s behalf for retirement purposes.

Lessened by 2% for wages up to $106,800

Questions and Future Topics