Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan Administration Disability Benefits Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan - MaineSTART Employer Services V3/V10 Update (ESS) Financial Reporting Closure

Welcome & Housekeeping MainePERS Briefly Why Are We Here?

Todays Presenters Marlene McMullen-Pelsor Manager, Employer & Survivor Services Deanna Doyle Retirement Services Specialist Ellen Hughes Disability Supervisor Lynn Pease Survivor Services Supervisor Stephanie Fecteau PLD Plan Administrator Kathleen Alley Employer Services Supervisor Sherry Vandrell Director of Finance No Photo

Please hibernate your technology (Cell phones and other electronic devices) Breaks and Lunch Photos Questions Other

Independent Public Agency Public Pension System Financial Institution

Employer Reporting Work Group

We are interdependent We want to be of assistance Trusted partners to call upon

Welcome MainePERS Briefly We Want to Be of Assistance

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Benefits Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan - MaineSTART Employer Services V3 Update Financial Reporting Closure

What is a Defined Benefit Plan and who does MainePERS administer these plans for? Why is determining membership eligibility and accurate reporting so important? What are the types of questions or requests for information that I should contact Retirement Services for? Retirement Services

Retirement programs administered by MainePERS Governor Judicial Legislative State workers Teachers Participating Local Districts

What is the Defined Benefit Plan? Benefits are defined by a specific formula based on years of service and average final compensation; Eligibility for benefits is defined by the employee’s age and/or years of service; Investment risk is borne by the employer; Designed to provide a monthly benefit in a set amount for the retiree’s lifetime. MainePERS administers Qualified Defined Benefit Plans under 26 USC Section 401(a)

Regular & Special Plans Regular Retirement Plan Retirement Plan with a Normal Retirement Age of  60/62/65 for Teacher Members  60 or 65 for PLD Members Normal Retirement Age Earliest you can retire without a benefit reduction Special Retirement Plan Retirement Plan that provides retirement at a younger age with no reduction. And/or Provides a higher level of benefits Cost of Living Adjustment (COLA): Provision that provides an adjustment of up to 3% to all or a portion of a retiree’s benefit annually, once eligible A PLD may or may not have the COLA provision. All Teacher members have the COLA provision.

When is a member eligible for Service Retirement Benefits? Upon meeting service and/or Normal Retirement Age requirements of their plan; Service & Age requirements differ depending on plan How are benefits calculated? Based on Average Final Compensation (Average of member’s three highest years of earnings); Years of Creditable Service; Age at retirement; Applicable benefit factors for the plan(s). Members should contact Retirement Services if they have questions about qualifying for Service Retirement and/or how their benefits are calculated.

Will I be able to live on my defined benefit? Under most regular plans, at Normal Retirement Age with 25 years of service credit, a member’s defined benefit under the Full Benefit Option would be 50% of his/her average annual income. Retirees will need 70%–90% of their current income to maintain their standard of living in retirement. Encourage your employees to START saving NOW to supplement their MainePERS benefit so that they can afford a comfortable retirement tomorrow! Ways to Supplement: Accrue service credit in excess of 25 years Social Security or other Federal Pension Benefits Personal Retirement Savings Accounts- MaineSTART

Determining Membership Eligibility Who is Eligible? Mandatory vs. Optional Membership

Determining Membership Eligibility - Teachers Membership is MANDATORY for public school teachers in Maine as defined by statute. Exception: Membership is OPTIONAL for Substitute Teachers! 1)Department of Education review & response 2)MainePERS reviews detailed job description and employee’s past history

Determining Membership Eligibility - PLDs Who is covered? Determined by Employer Exclusions; Statutes & Rules When is membership optional? Elected Officials or Officials appointed for fixed terms; Employee is covered by Social Security; Employee has option to participate in Alternate Retirement Plan that meets statutory requirements; Chief Administrative Officer of PLD; Any employee not subject to Municipal Public Employees Labor Relations Law; Employee in service on the date employer begins participation with MainePERS

Determining Membership Eligibility Optional Membership & Importance of One-Time Elections What does this mean for employees with optional MainePERS membership? Elections to participate or not, that are in effect on July 12, 2010 or first made after are irrevocable and stand for all current and any future employment with that employer. Employers are responsible for offering membership to eligible employees, documenting the election & reporting it to MainePERS.

Required Membership Reporting & Forms MainePERS uses the information you provide on membership forms & payroll filings to: Grant service credit; Determine vesting status & benefit eligibility: Calculate retirement benefits for your employees - our members Why is this information important?

Reporting Earnable Compensation What is Earnable Compensation? Why does it matter? What if I am not sure if a payment is earnable or not? Contact Retirement Services

When should I submit a Personnel Status Change Form? To report a Leave of Absence, submit a PSC when the leave begins AND ends. Also, submit when the type of leave changes. Reporting- Membership Forms Termination Separation Death Leave of Absence

When do I submit the Employer Preliminary Benefit Certification Form (PB Cert Form)? Submit upon request from MainePERS, but only AFTER the employee has terminated. Reporting- Retirement Forms Timeliness is important.

When do I submit the Vacation and Sick Leave Reporting Form? Reporting- Retirement Forms Submit upon request from MainePERS, but only AFTER you have issued the final pay to your employee. Call Retirement Services with questions about completing this form.

Service Retirees Returning to Work with the ‘Same’ Employer 1)Termination of ALL MainePERS-covered employment is required in order for your employees to be eligible for retirement benefits. 2)Employers must report retirees returned to work. 3)Employees may not know what plan they retired from.

What does ‘Same’ Employer mean for this purpose? For retired State Employees and Teachers - Any State of Maine employer (including the Maine Community College System) or any public school in Maine if employed as a “teacher”. For those retired from the PLD Consolidated Plan - Any PLD participating in the Consolidated Plan. For those retired from a non-Consolidated PLD - The specific, non- Consolidated PLD the member retired from. Call Retirement Services for information about what plan the employee you are hiring retired from and if they are returning to work for the ‘Same’ Employer. Service Retirees Returning to Work with the ‘Same’ Employer

Early Service Retirees For Retirees who retired early with an age reduction and are returning to work before reaching Normal Retirement Age. NO CONVERSATION BEFORE RETIREMENT about returning to work after retirement with any ‘same’ employer. Must be 30 days between termination of employment before retirement & re-employment AFTER effective retirement date. Cannot work more than 90 days per year.

‘Of Age’ Service State/Teacher Retirees Must be 30 days between termination date before retirement & date return to work after retirement effective date. Retired from a classroom based position? Employers determine whether position is classroom based or not.

‘Of Age’ Service Retirees PLD, Legislators & Judges Cannot return to MainePERS covered employment until on or after effective retirement date; No other restrictions on time worked or pay.

What is the Defined Benefit Plan? Benefits are defined by a specific formula that is based on years of service and average final compensation; Eligibility for benefits is defined by the employee’s age and/or years of service; Investment risk is borne by the employer; Designed to provide a monthly benefit in a set amount for the retiree’s lifetime. MainePERS administers Qualified Defined Benefit Plans Under 26 USC Section 401(a)

Why is determining membership eligibility and accurate reporting so important? Employers are responsible for placing employees in the correct retirement plan. MainePERS uses the information reported to: Grant service credit; Determine vesting status & eligibility for benefits; Calculate the benefit amount your employee receives in retirement Reporting errors can be costly for Employers, Members, the Plan and/or MainePERS.

When would I call Retirement Services with a question or request for information? Is the employee eligible to participate in MainePERS? Is this payment earnable compensation for retirement? What MainePERS benefits are available to my employee? What membership or retirement forms should I submit and/or how do I complete them? My new hire is receiving benefits from MainePERS, should I report him as a retiree returned to work ?

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Benefits Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

Responsibilities State Social Security Administrator for Maine Administration of MainePERS Plans for its Participating Local District (PLD) Employers:  Joining/withdrawing from MainePERS  Changing a service retirement plan  Adding the COLA provision  Membership eligibility Administration of MaineSTART - the MainePERS sponsored 457(b) and 401(a) Defined Contribution Plans

What is a Federal Section 218 Agreement and does your entity have one? Social Security – 218 Agreements Voluntary Agreements for Coverage of State and Local Employees

Social Security and Medicare Do your employees pay into Social Security and if so, under what basis? Federal Section 218 Agreement All employees pay SS, unless excluded Default SS (Section 210) No 218 Agreement but the employer paid SS prior to participating in MainePERS - some employees are grandparented for SS coverage only (no MainePERS coverage) Coverage for part-time, seasonal, or temporary employees (P,S,T) employees in lieu of MainePERS.

Social Security and Medicare For questions about whether or not earnings are subject to FICA (Social Security and Medicare), contact: Stephanie Fecteau State Social Security Administrator for Maine For questions relating to Social Security and Medicare benefits, contact: Social Security Administration

MainePERS PLD Plan Administration includes working with public employers on: Joining/withdrawing from MainePERS Changing a service retirement plan Adding the COLA provision Membership eligibility Employer related issues

MainePERS PLD Employers include: Counties, municipalities, quasi-municipal corporations, or incorporated instrumentality of the State or of one or more of its political subdivisions Water/Sewer Districts School Districts/Charter Schools Libraries Housing Authorities Associations

MainePERS PLD Plans - Statistics As of July 1, 2014 Stand alone PLDs and employers in the PLD Consolidated Plan Employers304 Participants19,019 Benefit Recipients8,524 Total Funding Ratio 91.2%

Employers may join MainePERS as a new PLD, or change their plan (for existing PLDs) effective January or July 1 st of any year by following the process below: To join the plan, or to make a change, the employer must provide MainePERS with a certified copy of the vote taken to join or change the plan. A ratified collective bargaining agreement is not sufficient. Joining MainePERS as a PLD, or Changing a Plan

Who has Authority? School Districts vs. School Department as an Employer Reminder: MainePERS plans and provisions may only be adopted by an employer’s governing body. School District = Has full authority. A school district is a legal entity. School Department = Has no authority - jurisdiction is under the governing body of the municipality. The school is a “department” of the municipality, not a separate legal entity.

PLD vs. State/Teacher Retirement Programs Differences in the Programs Normal Retirement Age Contribution Rates Group Life Insurance COLA Portability/same employer Governance Social Security Coverage Health Insurance

Governance of the PLD Program The PLD Advisory Committee  Monitors plan funding and recommends annual employer rates to the MainePERS Trustees  Recommends plan design changes to the MainePERS Trustees MainePERS Board of Trustees  Adopts rates or sends back to Committee for specific concerns  Submits plan design changes to the Legislature or sends back to the Committee for specific concerns Maine Legislature  Discusses and adopts or does not adopt plan changes

MEMBER: NOMINATED BY: David Barrett Maine Municipal Association Vacant, awaiting appointment Appointed by Governor Steven ButterfieldMaine State Employees Association Rick Cailler Professional Firefighters of Maine Rob Walker/Charles Betit Maine Education Association John Eldridge Maine Municipal Association Traci Place Teamsters Union Local #340 Janice Kimball Maine Municipal Association John Schlosser Maine School Management Association Sylvia Hebert AFSCME, Council 93 Dr. Thomas J. Ward Maine School Management Association Sandy Matheson, Exec. DirectorEx-officio, MainePERS MainePERS PLD Advisory Committee

Re-cap of July 1, 2014 Changes to the PLD Consolidated Plan Contribution Rate Increases Cost of Living Adjustment Normal Retirement Age is 65 for new members of the Consolidated Plan on/after July 1, 2014 For those with a Normal Retirement Age of 65, age-reduction for retiring early is 6% per year

Employer Contributions Established each year, based on results of the annual actuarial valuation  For copies of Annual Valuation Reports visit: Subject to market volatility  Assumed rate of return = 7.125%

How Defined Benefit Funding Works Member contribution + employer contributions + investment returns - benefit payments = trust fund balance Each year, the actuary determines what it costs to provide the benefits earned in the upcoming year (normal cost) The actuary also calculates how much will be owed to each member for work through the end of the fiscal year and discounts it back to present value using the long-term investment earnings assumption (7.125%)  This liability is compared to the actuarial value of assets on hand to determine the over/underfunding of the plan (UAL) Normal cost and any UAL cost are converted to % to be applied to payroll throughout the year (contributions) The employer and employee pay these costs as pre-determined

Responsibilities Recap State Social Security Administrator for Maine  Employer liaison for coverage and tax issues between the State, IRS, and the Social Security Administration Administration of MainePERS plans for Participating Local Districts  Employer liaison We’re here to help! Should you have any questions, please contact us.

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Benefits Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

One of the Benefits available to members of the Maine Public Employees Retirement System (MainePERS) is the Disability Retirement Program. Not a supplemental insurance – a retirement benefit. Eligible members receive an income benefit and continue to accrue creditable service until they are able to return to employment or change over to service retirement. Who is eligible for Disability Benefits?

You must be a member and have not received any full refund of contributions. You must have a mental or physical incapacity that makes it impossible to do your job. The condition(s) must result in permanent functional limitations that makes it impossible to perform the duties of your employment position. Who is eligible for Disability Benefits?

You must meet the terms of your specific disability retirement plan as it relates to any age restrictions or other required provisions. You may not have a service retirement and a disability benefit at the same time – you are ineligible for disability benefits after receiving service retirement benefits or if you have refunded your contributions. At the time you became incapacitated, you must have been on your employer’s payroll and made contributions to MainePERS. Who is eligible for Disability Benefits?

Job modifications – is your employer willing to make some modifications that would allow you to do your job or provide another position of equal pay and stature? You may not be eligible for disability benefits if you have fewer than five years of continuous creditable service preceding your last date in service. If you have been incapacitated for more than 2 years, you must meet additional criterion. Who is eligible for Disability Benefits?

You should apply for disability benefits as soon as you become incapacitated, as MainePERS generally can not pay retroactively for more than six months prior to the date of the application. Initial Application process takes approximately four to six months. You may apply even if you have a pending Worker’s Compensation claim. When to apply If you receive Worker’s Compensation or Social Security disability (PLDs who pay into social security) for the same condition as MainePERS the benefit will be offset.

Employer Report with job description, most recent performance appraisal, report of any disciplinary actions, last 12 months sick and vacation usage and any medical documentation Employer Interview – information regarding any difficulties the member is/was having performing job duties, clarification of duties on job description Termination/Last day in pay status – vacation and sick leave reporting form and Human Resource Profile (HRP) Employer Information

This is a Retirement Benefit Specific Eligibility Requirements Summary For Questions about Disability Retirement or for an application package please call or visit our website at

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits - PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

Let’s talk about… Who may be entitled to benefits? What benefits may be available? When benefits may be effective?

Ordinary Death Benefits Ordinary death benefits are available if, when the member dies, they are: In service Receiving a disability benefit Not in service and have contributions remaining at the system

Designation of Beneficiary Pre-Retirement Death This form is used to designate a beneficiary(ies) to receive any survivor benefits in the event of the employee's death prior to service retirement.

Types of benefits available to Beneficiaries A Lump-sum Refund A lump-sum refund is a refund of the deceased’s contributions and accrued interest. A Survivor Benefit A Survivor Benefit is a monthly benefit available based on the number of beneficiaries designated and their relationship to the deceased. The Reduced Retirement Allowance The reduced retirement allowance is a calculated monthly benefit which uses the deceased’s age, average final compensation, creditable service, and age of the beneficiary(ies) in the calculation.

Accidental Death Death as a result of an injury arising out of, and in the course of, employment Only available to spouse and dependent children Offset by Workers’ Compensation received by spouse and dependent children

We talked about… Who may be entitled to benefits? What benefits may be available? When benefits may be effective?

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

Let’s talk about… Who is eligible for coverage? What coverage is available? When coverage is available?

Term Life with Accidental Death/Personal Loss Enroll without medical screening Payroll deduction Basic into retirement Statistics Active Employees31,800 Have Supplemental Coverage10,000 Have Dependent Coverage 7,500 Retirees with Coverage18,200

Enrollment Eligibility Permanent Full and Part Time Employees who work 20 hours or, 2½ normal working days Within 31 days of first eligibility Evidence of Insurability is required after 31 days. If employee refuses coverage, still submit the application through ESS.

Welcome Letter Coverage they elected and level Encourage them to complete a Designation of Beneficiary form Direct them to Certificate of Coverage FAQs Third-Party Designation form

Levels, Rates, Premiums We take the annual compensation you provide, along with the corresponding GLI rate to determine the monthly premiums. We then generate your monthly bill as seen within ESS.

The Life of the Employee May increase coverage May decrease coverage Leave of absence Termination Retirement Death

Termination of Employment When you submit a PSC form for a terminating member, MainePERS will offer the participant the opportunity to continue coverage at their own expense.

You CAN take it with you when you go! Retirees may be able to continue their basic Group Life Coverage into retirement at no additional cost. This amount is reduced annually on the anniversary of the date of retirement at the rate of 15% per year to a minimum of 40% of the initial amount that continued into retirement or $2,500, whichever is greater. 3-YEAR AVERAGE OF $28,000 FROMTHROUGHAMOUNT 7/1/20146/30/2015$28,000 (full coverage) 7/1/20156/30/2016$23,800 (85% of 28,000) 7/1/20166/30/2017$19,600 (70% of 28,000) 7/1/20176/30/2018$15,400 (55% of 28,000) 7/1/2018And thereafter$11,200 (40% of 28,000)

An Unfortunate Event MainePERS processed approximately 1300 reported deaths in fiscal Approximately 600 had Group Life Insurance Coverage. Response to a reported death is generally less than one week. Claims are generally processed within 2 weeks of receipt.

Designation of Beneficiary Group Life Insurance This form is used to designate or change beneficiary(ies) under the Group Life Insurance Program.

We talked about… Who is eligible for coverage? What coverage is available? When coverage is available?

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan - MaineSTART Employer Services V3 Update Financial Reporting Closure

Defined Contribution Plan MaineSTART

This presentation is for information and illustrative purposes only. MainePERS does not provide investment advice or make investment recommendations. This presentation uses assumptions, including assumptions about rates of return. If these assumptions turn out to be inaccurate, the results will vary. All investments have risk. Past performance of investments does not guarantee future performance.

MaineSTART DescriptionPLD Defined Benefit (DB)Defined Contribution (DC) Employee Contribution7.5% of Compensation IRS Maximum for 2015 = $18,000 Employer Contribution8.9% of CompensationOptional Contributions and Interest are Federal Tax Deferred Yes Contributions and Interest are State Tax Deferred NoYes Benefits Based on average final compensation, years of service, and age Based on participant’s accumulated balance Investments Invested according to MainePERS investment policy Participant responsible for investment election Investment Results Affects funding level of the plan Affects employee’s ultimate benefit

Why participate in the MaineSTART DC Plan? Tax Advantage in Current Year Tax Deferred Savings Growth Retirement Income Simple investment selection Low cost funds MainePERS commitment to customer service Trusted, local manager of your retirement funds since 1942

MaineSTART DC Plan- Statistics As of July 31, (a) and 457 (b) Defined Contribution Plans Employers66 Participants984 Assets $27,398,316

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

Changing Roles Secure Data Providing Service You Need

Changing Roles Less focus on technical application More focus on support and Customer Service  Money  Data  Service

Rates Effective with payrolls paid in July - similar to what happens with W2s at tax year end New Plan rates effective July 1 st

Rates Where can you find the current rates?

Employer Statements ER Location: Retirementville You can view your Employer Statement under the: Employer Management > Review Payroll Reports, Billing, History & Payments> Documents tab.

Employer Self Service Desktop Technical Specifications

Contact & User information We need your help! Keeping your contact information up-to-date, allows us to contact you quicker & more efficiently. Employer Location  Address, Phone, Contacts  Name, Title, Role

Customer Service One MainePERS reporting contact Simplifying service for you Group Life Billing Payroll Processing Employer Self Service

Employer Training Program MainePERS offers training for Teacher and PLD payroll and human resources personnel at our Augusta office.

Employer Training Program MainePERS’ Disability Group Life Insurance Survivor Benefits Retirement Services Employer Self Service (ESS) (forms and payroll reporting requirements) Employer Self Service (ESS) (forms and payroll reporting requirements) Full-day training is an overview of: Half-day training is an overview of: Find our Employer Training schedule at:

Our Focus Is On You! Continues to change... Maintaining data securely... Providing service you need Contact Employer Services at: ext or (207)

Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan- MaineSTART Employer Services V3 Update Financial Reporting Closure

Introduce V3 Version 10 Actuarial Link to Financial Reporting New Financial Reporting Standards

Updating to V3 Version 10 The same software, just a newer version.

Why the upgrade? Security Performance Improved functionality

Implementation Methodology Data Conversion Data from the existing V3 version is being staged and assigned storage locations within the new version. Data does not need to be converted from one form to another as with the previous implementation from legacy systems to V3.

Implementation Methodology Vitech, the software vendor, is migrating the existing data into the new version module by module. MainePERS then tests and reviews the results with Vitech for accuracy. There are over 60 sprints to be conducted!

Timeline and Current Status Current Timeline: Kick-off October 2014 First Look December 2014 First Round of Testing March 2015 Second Round of Testing July/August 2015 In-house Instance Expected Fall 2015 First ESS Work Scheduled to Begin November 2015 Anticipated Go-Live Winter

Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan - MaineSTART Employer Services V3 Update Financial Reporting Closure

Actuarial Link to Financial Reporting Governmental Accounting Standards Board – GASB Pension Standards Other Post - Employment Benefits - OPEB

Actuarial Link to Financial Reporting

Census Data Retirement Date of Hire Date of Birth Full-Time Part-Time  Member benefits are calculated based on the data you provide throughout their employment history  The total pension liability is also calculated based on the data provided along with other actuarial assumptions, including the discount rate  Census data must be audited because of the relationship it has on the liability being calculated and now reported

The assumed rate of return used to project investment returns over the long term. Discount Rate For Funding: Assumed Rate Established by the Plan Administrator. What Rate to Use? For Financial Reporting: It Depends.

Governmental Accounting Standards Board – GASB Changes in Financial Reporting for Pensions The Governmental Accounting Standards Board (GASB) has approved several new standards that impact MainePERS and many of its participating employers. GASB Statement 67: Financial Reporting for Pension Plans GASB Statement 68: Accounting and Financial Reporting for Pensions. GASB Statement 71: Pension Transition for Contributions Made Subsequent to the Measurement Date.

Governmental Accounting Standards Board - GASB GASB Statement 68: Requires employers who participate in defined benefit pension plans to recognize a net pension liability on their financial statements. The net pension liability is defined as: “the total pension liability minus the pension plan’s fiduciary net position.” Cost-sharing employers will report their proportionate share of the net pension liability for the plan as a whole.

Governmental Accounting Standards Board - GASB Issues to consider with GASB 68: Measurement Date vs. Reporting Date Schedules of Employer Allocations – Audited Employer Specific Liabilities Notes and Disclosures New Required Supplemental Info (RSI) Covered Payroll

Governmental Accounting Standards Board - GASB Special Funding Situations  In-kind Revenues In-kind Revenues Agent Employers First year implementation  Prior period adjustment or restatement? Contribution After the Measurement Date (GASB 71)

Governmental Accounting Standards Board - GASB It is important to note that the changes being required by GASB are for financial reporting only. They do not change the way contributions are calculated. MainePERS will continue to work with our actuaries and Board of Trustees on funding policy and contribution requirements.

Governmental Accounting Standards Board - GASB GASB Statement 73: Accounting and Financial Reporting for Pension and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Governmental Pension Plans (DB) not covered by GASB 68.

Other Post-Employment Benefits - OPEB GASB Statement 74: Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. (Statement 74 replaces GASB Statement No. 43) GASB Statement 75: Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. (Statement 75 replaces the requirements of GASB Statement No. 45)

What to Remember 1.If you are a governmental employer and you participate in a defined benefit plan administered by MainePERS, these standards apply to you. If you are not the person responsible for financial reporting at your employer, please pass on this information. Sherry Vandrell, Director of Finance We didn’t write the standards. 3. We, at MainePERS, are here to help! Should you have any questions, please call us.

MainePERS Welcome Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan- Administration Disability Program Survivor Benefits- PLD & Teacher Group Life Insurance Defined Contribution Plan - MaineSTART Employer Services V3 Update Financial Reporting Closure

Your feedback helps us, help you!

MainePERS 2015 Regional Trainings 14 August 2015 YOUR NAME

Thank you for attending today's session! If you have additional questions, please contact us. Maine Public Employees Retirement System PO Box 349 Augusta, ME Telephone: (207) Toll free: TTY: (207)