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

Eligibility

Membership Eligibility Three steps to successful eligibility management Documentation Determination Periodic Review

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TRS Plan 1 Member –Person who has established membership and has not withdrawn their contributions Former Member –Person who has established membership and has withdrawn their contributions

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

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Position –Report in HERP if appropriate Or –Report in PERS until TRS Plan 1 membership is reestablished (payback withdrawn TRS Plan 1 member contributions) Ineligible Position –Report in HERP if appropriate –Do not report on transmittal until TRS Plan 1 membership is reestablished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

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 –Contractor Questionnaire Current members of Higher Education Retirement Plans (HERP) Student and spouse of student –WAC

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

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

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

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 If the individual is eligible for HERP coverage and working in an eligible position (PERS/TRS) give them a choice –WAC –“Page 9”

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 Positions Change Review all less than full time positions on a regular basis At least yearly

Eligibility Periodic Review Documentation Determination SUCCESS

Eligibility 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

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

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 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 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 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 PERS 08/01/03 90 day waiting period TRS 07/22/07 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

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 *Must have justifiable need, use the established hiring process, and keep all records. TRS 1 2 and 3 N/A 30 Days867 Yearly < 07/22/07 > 07/22/07 30 days 1500 Yearly 1500 Yearly* 1900 Life 45 days PERS1< 08/01/031 Month 1500 Yearly 1900 Life 2 or 3 > 07/31/03 N/A 30 Days 90 Days 867 Yearly 1500 Yearly* 1900 Life PlanRetire Date Wait PeriodHour 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.

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.

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.

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

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 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 ) 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 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 – Telephone –Local (option 2) –Toll free (option 6 then option 2) Fax –

Thank You

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