ERS/PSERS RETIREMENT PLAN OVERVIEW PRESENTER: FLAVIA PEYNADO GEORGIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (GASBO) AUGUSTA GA Employee’s Retirement System of Georgia (ERSGA) November 5, 2015

AGENDA PSERS  Membership & Eligibility  Enrollment  Contributions  Creditable Service  Service Retirement  Retirement Application  Refunds  Returning to Public School Employment  Frequently Asked Questions  PSERS Membership Statements ERS  Membership & Eligibility  Enrollment  Contributions  Earnable Compensation  Retirement Application  Forfeited Leave  Returning to Employment after Retirement

PUBLIC SCHOOL EMPLOYEES RETIREMENT PLAN OVERVIEW

MEMBERSHIP (PSERS)  Originated: January 1970  Public Schools Employees Retirement System (PSERS) is a supplemental retirement plan for public schools employees who are not covered under the Teachers’ Retirement System of Georgia (TRS).

ELIGIBILITY (PSERS) Membership Eligibility Eligible are : Public School Employee  Not covered by TRS  Full-time or part-time position  On Monthly Payroll  Performs regular services during the month In-eligible are :  Teachers or any school personnel  Substitute Employees (< 60% of time)  Fulltime Supervisors or Managers

ENROLLMENT (PSERS) The Enrollment Process  No Membership Applications  File Transfer Protocol (FTP) or Manual Enrollment  Valid SSN  Full Legal Name  DOB  Gender  Valid Address  Valid Contribution Code  Valid Plan Eligibility Date

CONTRIBUTIONS (PSERS)

(See PSERS Handbook pg. 6) PLAN CONTRIBUTION GROUPS AND RATES  Months: September – May ($36 or $90 per year)  Prior to July 1, 2012 (PSRS-$4)  On or after July 1, 2012 (PXRS-$10)  Contributions are an after tax deduction

CONTRIBUTIONS (PSERS) PSERS Deductions  What determines when a PSERS employee’s first deduction or last deduction is made?  If I have a lagged payroll how should deductions be handled?  If a PSERS employee works less than a ½ month am I required to send contribution for that month?  If on semi-monthly payroll, should $2 (PS) or $5 (PX)deduction be made in the 1 st and 2 nd pay period?

CREDITABLE SERVICE Service Accrual  September to May = 1 year of creditable service Earning Creditable Service  Prior Service ( July 1, June 30, 1970)  Credit For Service While A Member of the Teachers Retirement System Of Georgia  Job Related Temporary Disability / Leave Without Pay  Refund Buyback  Military Service ( “USERRA”)

SERVICE RETIREMENT Normal Retirement  As early as the first day of the month on or after your 65 birthday  With at least 10 years of Creditable Service.  Attainment of age 65 and ten years of Creditable Service. Early Retirement  As early as the first day of the month on or after your 60 th birthday,  With at least 10 years of Creditable Service  Normal Retirement benefit less 6% per year < age 65. Terminated Vested Retirement  Terminate employment with 10 years of service but prior to age 60  Do not receive a refund of contributions and interest  Apply for retirement at age 60 or 65

RETIREMENT APPLICATION PROCESS  PSERS retirement applications are available online at Applications must be received at ERSGA  Applications due: Minimum 30 days prior, not earlier than 90 days  Effective retirement date -1 st day of the month.  Retirement benefit is paid on the last business day of each month.  Benefits can be mailed or direct deposited

REFUNDS  Any terminated employee is eligible to receive a refund of contributions plus interest.  Membership status must be TERMINATED to be eligible for refund  Members can apply online by logging on to their online member account via “Account Access” at  Refund process may take up to 8 weeks

RETURNING TO EMPLOYMENT BEFORE RETIREMENT  Verify plan eligibility (PSRS or PXRS)  Use the Check Plan Eligibility Module on the Employer Website or Contact your PSERS employer representative

RETURNING TO EMPLOYMENT AFTER RETIREMENT REHIRED RETIREES LESS THAN AGE 65:  Retirement benefits are suspended.  Return to active status, and contribute to PSERS  Submit a completed PSERS Rehired Retiree Reporting Form  Enroll in PX group ($10)  Accrue additional service credit  Reapply for retirement benefits upon termination  New benefit is based on the total accrued service. HB 202 EFFECTIVE MAY 11, 2009 AND IS NOT RETROACTIVE. MEMBERS WHO RETIRED AND RETURNED TO WORK PRIOR TO 5/11/2009 ARE NOT AFFECTED UNLESS THEY HAVE A CHANGE IN EMPLOYMENT STATUS.

RETURNING TO EMPLOYMENT AFTER RETIREMENT REHIRED RETIREES AGE 65 AND OVER:  Must make an election  Cease benefits and start contributing  Continue benefits and do not contribute  Submit a completed PSERS Rehired Retiree Reporting Form  Election to cease benefits  Enroll in PX group ($10)  Must reapply for retirement upon termination  Election to continue benefits  Do not enroll in PSERS Plan

FAQ’s Q: Can EE contribute more than $4 or $10 per month? Q: Are substitute employees under the PSERS plan? Q: Can EE purchase or transfer out of state service? Q: Is a PSERS member eligible for life insurance under the plan? Q: Can an EE retire in June, July or August?

PSERS MEMBER STATEMENTS Now Available Online!  All PSERS members who contributed in February 2015 have a Member Statement available online. Employers can access the statements from the Employer Reporting Desktop and members can access via their online account.  Less than 2% of PSERS members have accessed their statements. Please encourage members to register for online access; they need a valid address and designate a beneficiary to enter the site.  This statement provides account balances, service, and an estimated monthly retirement benefit  To view a statement, they can click the ACCOUNT ACCESS. Member Statements are found under Personal Correspondence.

ERSGA Employer Reporting Desktop

ERSGA Website - Account Access

PSERS INFORMATION PSERS Plan Page PSERS Employee Handbook PSERS Employer Manual

EMPLOYEES RETIREMENT PLAN OVERVIEW

MEMBERSHIP (ERS) A person employed at a County School System with ERS service can continue contributing to the ERS plan. To be eligible to do so he/she must have:  Greater than or equal to 10 years of ERS membership  Be in a fulltime position  35 hours weekly for nine months out the year  Elect within 60 days of hire date (irrevocable)

ENROLLMENT (ERS)  Contact ERS to verify if employee is eligible  Member-Complete and submit a TRS/ERS vested election form (available at  Employer-Send a letter or memo to ERS with the following information  Name, last four of SSN, hire date and position  Job details- FT/PT, hours required to work per week  Employer Reporting website  Activate ERS plan  Add ERS employee as a new member  Manual update and reporting each month

EARNABLE COMPENSATION  What is earnable compensation? “full rate of regular compensation payable to a member employee for his full normal working time”  What is considered Pension Eligible? “regular compensation for the normal or scheduled working time is reportable monthly to ERS ”  Non-pension eligible compensation include  Summer and After School pay  Supplements from county or municipal funds (not for full working time)  Pay for overtime  Pay for working a holiday ** Contact ERS if unsure about the pension eligibility of a supplement.

CONTRIBUTIONS (ERS) PLAN CONTRIBUTION GROUPS & FY16 RATES  ERS Old Plan (OAR) EECON- 1.5%, ERPICKUP- 5%-$7, ERCON %  ERS New Plan (NAR) EECON- 1.5%, ERCON %  Contributions are an after tax deduction

CREDITABLE SERVICE Service Accrual  Each month member’s salary and contributions reported  Reporting a full 12 months is required for a year of service credit Reporting 10-Month Contract employees  Report annual salary and contributions equally over a 12- month period  At termination or retirement do not report balance of the contract

CREDITABLE SERVICE  Can be earned, transferred into ERS, or purchased  Member Service and Prior Service  Refunded  Military Service  Airtime  TRS service transfer  Forfeited Leave Service

FORFEITED LEAVE  Forfeited annual leave, forfeited sick and accrued sick leave  Leave Hours Reported each month  Converted to creditable service at retirement

FORFEITED LEAVE Forfeited Leave Payment  Paid by employer at retirement  Employers at retirement are responsible for all leave hours including those earned at a previous employer  Combined total must be >= 960 hrs or 6 months  Cost is (Total # of leave hours ÷ 160)x Salary x (ERCON rate at retirement)

RETIREMENT APPLICATION PROCESS  ERS retirement applications are available online at Applications must be received at ERSGA  Applications due: Minimum 30 days prior, not earlier than 90 days  Effective retirement date -1 st day of the month.  Retirement benefit is paid on the last business day of each month.  Benefits can be mailed or direct deposited

RETURNING TO EMPLOYMENT-ERS Rehired Retiree is :  Limited to 1040 hours worked during calendar year  Benefits suspended until next calendar year  Retiree must be terminated and remain out of service for a period of time  Normal Retirement Age – 30 days  Early Retirement Age – 60 days  No Pre-existing agreement to return to service prior to retirement

RETURNING TO EMPLOYMENT-ERS Employer authorized by law to report ERS members subject to return to work restrictions Those include:  State Departments  Board of Regents  Retiree’s last employer prior to retirement (including a local school system)

ERS INFORMATION ERS Plan Page ERS Plan Guide ERS Employer Manual

CONTACT INFORMATION Flavia Peynado Business Operations Manager Lorraine Buster Pension Reporting Analyst