1. Department of Retirement Systems PPMS Vancouver, WA 2008

2. Agenda DRS Audit Forms Eligibility TRS PERS Retirees Questions

3. DRS Audit

8. Forms

9. Employers must elicit information from all new employees (RCW 41.50.139) Employer keeps this form Retirement Status

10. Forms 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 Member Information

11. Send form to Department of Retirement Systems Forms Used to document beneficiary information in case of death Separate $150,000 death benefit option Beneficiary Designation

12. Forms Used to document member’s change of investment program Member signs and returns form to employer Employer keeps this form Plan 3 Change of Investment Program

13. Forms Used for LEOFF 2 RRTW in an eligible position (excluding LEOFF positions) Member must choose between 2 options Member signs and returns form to employer Employer mails original form to DRS LEOFF 2 Retiree Re-employment

14. Forms Used to notify DRS if a member, beneficiary or retiree has passed away Employer mails original form to DRS Notification of Death

15. Eligibility

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

17. Determination

18. You are responsible for the initial determination of an employee’s eligibility for membership.

19. PERS Exempt from Membership Independent Contractors WAC 415.02.110 Contractor Questionnaire Current members of State Board Retirement Plan (SBRP) Student and spouse of student (with signed waiver) WAC 415-108-520

20. TRS

21. TRS Plan 1 Member Person who has established membership and has not withdrawn their contributions. Former Member Person who has separated from service and has withdrawn their contributions

22. 536225454 536-22-5454

23. 536225454 536-22-5454

24. TRS Plan 1 Members Report all TRS Plan 1 members regardless of position on the TRS transmittal from the first day of employment

25. TRS Plan 1 Former Members 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 SBRP coverage, they must join SBRP immediately Less than full-time contracts that are not eligible for your SBRP, provide a quarterly substitute report per RCW 41.32.013 Hired into a faculty position

26. TRS Plan 1 Former Members Eligible position Report in your SBRP if appropriate Report in PERS until TRS Plan 1 membership is reestablished (payback withdrawn TRS Plan 1 member contributions) Ineligible position Report in your SBRP if appropriate Do not report on transmittal until TRS Plan 1 membership is reestablished Hired into a non-teaching position

27. TRS Plans 2 & 3 Eligible Position Report in correct system/plan Ineligible Position Provide a quarterly substitute report if they are working in an ineligible position and not contributing to SBRP RCW 41.32.013 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

28. PERS

29. New Position Will meet eligibility definition for two consecutive years Existing Position Will meet eligibility definition during at least one year in any two year period 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

30. PERS 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 may be eligible for membership Employees in an ineligible position cannot be members

31. PERS Options New Member Plan Choice Transfer Option Membership Chosen

33. New Members 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

34. New Members 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 the member signed the form) Plan choice code 2C 3C 3D

35. 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

36. 535112222 KELLY 535-11-2222

37. Membership Chosen Member chose PERS Plan 2 Cannot transfer to Plan 3 in January Report member in PERS Plan 2

38. 123456789 123-45-6789 CASEY

39. Membership Chosen Member defaulted into PERS Plan 3 Report member in PERS Plan 3 90 days to choose investment program and contribution rate Report only employer contributions until MIF is received or member defaults Member contributions from date of choice/default forward Member chose PERS Plan 3

40. 544113232 544-11-3232 JEREMY

41. 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

42. PERS Plans 1,2 & TRS Plan 2 A member of PERS Plans 1, 2 or TRS Plan 2 who has withdrawn their contributions is treated as if they have never been a member of PERS or TRS If the individual is eligible for SBRP coverage they must join SBRP immediately

43. 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 131-16-031

44. PERS and TRS Plans 3 If the individual is eligible for SBRP coverage and working in an eligible position (PERS/TRS) give them a choice WAC 131-16-031 “Page 9” Of the TIAA-CREF Handbook

45. Documentation Determination Documentation

46. 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

47. 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

48. Periodic Review Documentation Determination Periodic Review

49. Positions change Review all less than full-time positions on a regular basis At least yearly

50. Periodic Review Documentation Determination SUCCESS Eligibility

51. Retirees

52. A person receiving a lifetime, defined benefit OR A person becomes a retiree on their Accrual Date Lump sum benefit

53. Retirees Member must complete the following steps: File an application with DRS Terminate employment with all public employers Sever all contractual agreements for future employment Accrual Date~ AND Accrual date is set when a member is eligible to retire

54. 536225454 536-22-5454

55. Retirees Most retirees are limited in the amount of hours they can work and still receive their pension from DRS Employers are responsible for correct reporting of compensation and hours Retirement Status Form Verify status via MRV RCW 41.50.139

56. 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

57. 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

58. 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

59. Retirees 97 TRS Plan 1 only Need email to set flag if contributing to SBRP Compensation and hours are required 98 Eligible Position 99 Ineligible Position Compensation and hours are optional

60. Retirees Calculations for benefit limits are based on the hours reported with type code 98 (eligible position) Report B codes for months with no compensation and hours Employer contributions are due for retirees who exceed 867 hours Invoice will be sent the first of the following month back to the first hour of employment

61. 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

62. Retirees *Must have justifiable need, use the established hiring process, and keep all records. PlanRetire DateWait PeriodHour Limit System 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 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 LEOFF 2** N/A None PSERS 2 N/A30 Days 867 Yearly **Must complete the LEOFF Plan 2 Retiree Re- employment Form

63. Questions

64. Question 1 An employee was enrolled in TIAA-CREF through Central Washington University (RA). She accepted a classified position at Clark College on June 26, 2008. Should she be given the choice to continue TIAA-CREF or only PERS choice?

65. Answer 1 Determining eligibility is the responsibility of the employer. As this scenario is not documented in WAC 131-16-021 it would be up to the review of the State Board for Community and Technical Colleges to determine. Things to consider : 1.Classified positions are not eligible for TIAA-CREF 2.If a position meets the PERS definition of eligibility the employee would have PERS choice rights Our assumption: if the member was previously enrolled in a TIAA-CREF position before and begins employment with you in an ineligible TIAA-CREF position they would only have PERS choice rights.

66. Question 2 An employee established membership in SERS 3 in Sept 2000, and began an exempt position with Clark College on July 16, 2008. Does the employee have the choice to continue with a DRS plan or only be placed in TIAA-CREFF?

67. Answer 2 The member would have PERS choice rights assuming they do not have previous PERS service.

68. Question 3 An employee’s position became eligible for PERS. He separated before his 90-day grace period without turning in any forms or making a choice. Would he still have another 90 day grace period to decide between PERS Plan 2 or 3?

69. Answer 3 Yes. If a choice is not made within the first 90 days and a member separates employment within that time they will have another 90 day period to make a choice.

70. Question 4 An employee’s position became eligible for PERS. He separated before his 90-day grace period but already turned in his forms making his choice. Would he still have another 90 day grace period to decide between PERS Plan 2 or 3?

71. Answer 4 No. Once the decision is made and the form is received, they will not have another 90 day period.

72. Question 5 An employee is working in an eligible position and eligible to waive coverage through Student Waiver form. She dropped to 10 credits fall quarter so she is not full-time. Do we have to add her to retirement for fall quarter because she is no longer eligible to waive? If we do, what happens when she returns to full-time student status – can she waive again or will she be required to remain on PERS?

73. Answer 5 A student in a PERS eligible position must be put on PERS. If the student is full time they have the option to waive membership. Once membership is waived they cannot later elect PERS membership unless there is a change of status. Change of employment status is going from eligible to ineligible position Part-time student or nonstudent status can not be exempted from PERS

74. Question 6 An employee established PERS 3 membership through a different agency, they are given 90 days from the date they became eligible to decide what rate option they want. We input them in PPMS as “PW” – using their eligible date as the “EFF DATE” and use “3C” as the PERS OPTION, even though they have not chosen a rate - we are required to input a PERS OPTION DATE. The system requires something in that field so we use their eligibility, is this the correct date to use?

75. Answer 6 Even though your system requires a date it should be the date the member signed the form. However as long as you submit the choice date as the date the member signs the form it’s all good.

76. Question 7 Supervisor documents that position is ineligible, but the work history is more than 4 months of over 70 hours. At the end of the first year it is determined and documented it will not require the 5 months of 70 hours Into the third year of work it is noticed that the employee has continued to work at an eligible level. The employee is placed on PERS effective what date?

77. Answer 7 At the end of the 2 nd year it is determined that the eligibility criteria was once again met the Employer must go back to the beginning of the 2 nd year. However if the Employer had not documented the position at the yearly reviews membership would be effective from the first month of the first year in which the position required work for 70 or more hours.

78. Contacting DRS DRS Web Site http://www.drs.wa.gov E-mail drsemployer@drs.wa.gov Telephone Local 360-664-7200 (option 2) Toll free 1-800-547-6657 (option 6 then option 2)

79. Thank You

80. Transmittal Reporting Choice Date Begin Date

81. What’s Reportable - LEOFF Authorized Paid Leave Retroactive Salary Increase Longevity Pay Additional Duty Pay Shift Differential Transmittal Reporting