Agenda 1 Eligibility –SERS –TRS Membership Determination Substitutes Retirees Reportable Compensation Transmittal Reporting –Codes –Edit Messages DRS Web Site

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Employer Responsibilities The initial determination of an employee’s eligibility for membership –Identify what positions you have –Assign each position a unique identifier Documenting your decision regarding positions eligibility –Position Eligibility Worksheet –60 years per established archival retention schedule Reporting all eligible employees from the first day of eligibility 3

Employer Responsibilities Regularly reviewing the determinations you made –At least annually –Non-eligible positions Timely and accurate reporting of transmittals and corrections 4

5 Eligibility

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The initial determination of eligibility must be based on the position –Job share Eligibility can also be determined by the person –Employees working in more than one ineligible position within the same district 7

Eligibility Definition-TRS Plan 1 Member –A person who has established membership but has not withdrawn their contributions Former Member –A person who has separated from service and has withdrawn their contributions 8

Eligibility Definition-TRS Plan 2 & 3 9 A position is eligible if it normally requires a least five months each year in which regular compensation is earned for 70 hours per month

Eligibility Definition-SERS & PERS New position –Meets eligibility definition for two consecutive years Existing position –Meets eligibility definition during at least one year in any two year period 10 A position is eligible if it normally requires a least five months each year in which regular compensation is earned for 70 hours per month

11 Position Eligibility Worksheet Evaluation and periodic review sections Position title and unique identifier Employee signature acknowledging determination Employer keeps form

12 Membership

13 Retirement Status Information required by law Documents member’s information and status Employer keeps form

Member Reporting Verification 14

Member Reporting Verification

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TRS Plan 1 Member Contract is 20 days or more –Report as active in TRS 1 –Type code Report all TRS Plan 1 members

20 Contract is less than 20 days –Report as substitute in TRS 0 –Type code 80 TRS Plan 1 Member

TRS Plan 1 Former Member Employee re-establishes membership in TRS 1 –Full time contract for 90 calendars days or more Report from the first day of contract Report as active in TRS 1 Type code Certificated position (TRS)

TRS Plan 1 Former Member –If not given a contract for 90 calendar days Report as a substitute in TRS 0 Type code Certificated position (TRS)

TRS Plan 1 Former Member Eligible position –Report in SERS until TRS Plan 1 membership is re-established By paying back member contributions –Type code Classified position (SERS)

25 TRS Plan 1 Former Member Ineligible position –Report as a substitute in SERS 0 –Type code 39 Classified position (SERS)

28 TRS Plan 1 Former Member Classified position (SERS) Prior PERS Plan 1 membership –Report in PERS plan 1

TRS Plan 2 & 3 Eligible position –Report as active in TRS 2 or TRS 3 –Type code 71 30

TRS Plan 2 & 3 Ineligible position –Report as substitute in TRS 0 –Type code 79 31

SERS Plan 2 & 3 Eligible position –Report SERS 2 or 3 –Type code 32 33

SERS Plan 2 & 3 Ineligible position –Report as substitute in SERS 0 –Type code 39 34

PERS Plan 1 Eligible classified position –Report in PERS 1 –Type code 18 (ESD’s type code 30) 36 Ineligible position –Do not report Eligible certificated position –Report in T0 –Type code 79

TRS and SERS Plan 3 Options Transfer New Member Plan Choice Membership Chosen 37

Transfer Option Who –TRS Plan 2 members hired prior to July 1, 1996 –SERS members with previous PERS Plan 2 history prior to August 1, 1999 When –Option for a one time transfer to Plan 3 in January of each year How –Report in plan 2 initially –3X –Member Information form dated in January 38

Renton SD

New Member Plan Choice Who –New to TRS on or after July 1, 2007 –New to SERS after August 1, 2009 When –Member has 90 days to make a choice between Plan 2 and Plan 3 How –Report in Plan 2 on first transmittal Unless member chooses a plan before payroll cutoff 40

New Member Plan Choice How –Submit plan choice record via the transmittal after the Member Information form (MIF) is received Plan choice date (date member signed form) Plan choice code –2C –3C –Member defaults to plan 3 at the end of 90 days Default date is the 91 st day Plan choice code –3D 41

Tumwater SD

43 Port Angeles SD Tumwater SD

Membership Chosen Who –A member who has previously chosen a plan Plan 2 or Plan 3 –A member who has defaulted to Plan 3 When –Member may not transfer or choose a different plan 44

Membership Chosen How –Report in Plan 2 45 Plan 2 –Report in Plan 3 –90 days to choose an investment program and rate option Default WSIB, rate option A –Report only employer contributions until a MIF is received or member defaults Member contributions from date of choice forward Plan 3

49 Substitutes

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Substitutes SERS substitute –A classified employee employed as a substitute for an absent employee –A classified employee working in an ineligible position WAC (9) TRS substitute –A certificated employee hired as a temporary teacher –A certificated employee working in an ineligible position RCW (36) 51

Substitute Reporting Report under Plan 0 in the appropriate system –TRS 0 –SERS 0 Type Codes –39 for SERS –79 for TRS 2 and 3 –80 for TRS Plan 1 Do not report “B” codes 52

Substitute Reporting Report begin and end dates when a member’s status changes –Substitute to eligible –Eligible to substitute Report member as either eligible or substitute (never both within the same month) –Any earnings reported for an eligible position makes the entire month eligible 53

Substitute Reporting PERS Plan 1 –Not reported –If position becomes eligible Report as PERS 1 SERS and TRS –Report with appropriate type code –Provide Substitute Fact Sheet –Quarterly notification Member Reporting Verification (MRV) –September 2004 forward 54

55 Retirees

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Retirees Must be reported to DRS Report in the system applicable to their current position Report under Plan 0 Report begin and end dates Report appropriate type code Report “B” codes for months with no compensation and hours Eligibility rules for each plan remain the same for retirees 58

Retirees TRS Plan 1 –97 for all employment Compensation and hours are required All other retirees: –98 Eligible position Compensation and hours required –99 Ineligible position Compensation and hours optional 59 Type Codes

Retirees LEOFF Plan 2 Retirees must 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 61

62 LEOFF Plan 2 Retiree Re-employment form Two options Member signs and returns form to employer Employer mails original to DRS

Retirees-LEOFF Must have a break in service from a LEOFF employer No hourly limits 64

Retirees-TRS, PERS and SERS Limited in the amount of hours they can work and still receive their pension –Employers are responsible for correct reporting of compensation and hours –Retirement Status form Verify status via MRV RCW Cannot have an agreement to return to work prior to their retirement date Must have a 30 day break in service from their accrual date 65

Retirees-TRS, PERS and SERS Accrual Date –Accrual date is set when a member is eligible to retire 66 –An application has been filed with DRS –Employment is terminated with all public employers –All contractual agreements for future employment are severed And

Retirees-TRS, PERS and SERS Plan 1 –1500 hours per year –1900 lifetime Plans 2 and 3 –867 hours per year 2008 Early Retirement Factors 67 Limits

Retirees-TRS, PERS and SERS Option at time of retirement –30 years of service –Age 55 RRTW rules are different –Immediately suspend benefit Until age 65 Contractor Status form –Directly compensated –MRV Effective 09/01/ Early Retirement Factors

69 Contractor Status Verifies if an independent contractor, who is directly compensated, has retired under the 2008 Early Retirement Factors Employer notifies DRS Employer keeps form form

Retirees-TRS, PERS and SERS Benefits are suspended if they work over their annual limit –DRS notifies both employer and member –Benefits re-start upon separation or beginning of new year Fiscal year or calendar year Calculations for benefit limits are based on hours reported with type codes 97 or 98 71

Retirees-TRS, PERS and SERS Hours associated with the following types of compensation are counted against a retiree’s annual limit –Actual hours worked –Vacation and sick leave used in lieu of a scheduled day –Paid holiday Vacation and personal leave cash outs are reportable, but do not count against the annual limit –Employer will be billed for contributions 72

73 Works 1500 hours Works 700 hours Works 1800 hours Works 1000 hours Works 1500 hours 1900 lifetime limit bucket Pension suspended at Years

74 Works 1500 hours lifetime limit bucket 633 Pension suspended at Works 1500 hours Years 5 Works 867 hours

75 Reportable Compensation

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Reportable Compensation Based on RCWs and WACs Used to calculate retirement contributions Used to calculate retirement benefits Not all salary or wages are reportable to DRS Based on the nature of the payment Report as earned 77

Reportable Compensation Was the payment earned as salary or wage for services rendered? –No: Payment is not reportable –Yes: Ask the next question Was the payment paid by the employer to the employee? –No: Payment is not reportable –Yes: Payment may be reportable 78

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80 Transmittal Reporting

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Transmittal Codes Status Codes –Alphabetical –Determine service credit –Determine retirement benefit –Report only one status code per transmittal line Type Codes –Two-digit number –Identifies type of employer –Identifies type of job performed –Determine contributions 82

Transmittal Codes Correct reporting of transmittal codes helps ensure: –Member contributions and interest are calculated and posted accurately –Member benefits are calculated correctly Current reporting Cash outs –Active members –Retiring members 83

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Transmittal Reporting Compensation must be identified by the month and year in which it is earned The information submitted on the transmittal report is edited for accuracy A Transmittal Edit Report is sent or is available online which lists the errors found and the actions taken –Snapshot in time –Notifies if information has not been reported 85

Transmittal Reporting 86 If a problem is discovered the transaction may be: –Rejected –Corrected –Left as is

Transmittal Reporting 87 Rejection The transaction creates an error or the system cannot determine the desired outcome so the transaction is rejected and not posted to the account Quinn, Lauren Defined Benefit:Earn Per: Compen: Mbr contr: Employr Contr: Status: AType Code: 32 Hours: Days: 0 Rejected:The sum of the transactions on this report would create a negative balance of hours or days for the earning period being reported. Resubmit with the correct information.

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Transmittal Reporting 89 Information Changed The transaction reported is incorrect but the system can determine the problem and adjusts accordingly. The adjusted transaction is posted to the account 71

Transmittal Reporting 90 Warning The transaction appears questionable, but is within allowable limits and is accepted and posted Quinn, Lauren Defined Benefit: Earn: Compen: MBR Contr: Employer Contr: Status: A Type Code : 71 Hours: Days: 30 Warning: Reported Compensation is greater than $10,000 (or less than -$10,000). Please verify and correct if necessary. Cashouts require a Status Code other than “A”.

Transmittal Reporting Member can’t withdraw their contributions –Funds will not be released DRS Third party administrator Pension benefits can’t be finalized Pension can’t be started for RRTWs Other employers may report incorrect data 91 Separation Dates

92 DRS Web site

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Contacting DRS Telephone –Local –Toll free (option 6) Option 1 for Accounts Receivable Option 2 for Employer Support DRS Web site – 95

96 Thank You

Document the need and keep all records pertaining to the hiring the retiree Have a written policy with an established process for hiring retirees with approval from the appropriate level of authority