1. Lifecycle of Service and Salaries Division of Retirement and Benefits

2. Lifecycle of Service and Salaries Division of Retirement and Benefits Tasks and Goals

3. Lifecycle of Service and Salaries Division of Retirement and Benefits Employer Tasks and Goals

4. Lifecycle of Service and Salaries Division of Retirement and Benefits Employer Employee Tasks and Goals

5. PERS Defined Benefit Plan

6. Hired, then terminated 30 years later One employer Consistent salary trend No breaks in service Verification needed: Termination date Final salary The Simplest Scenario

7. It’s Not Always That Simple PERS Defined Benefit Plan

8. What if the employee has leave without pay (LWOP)? It’s Not Always That Simple

9. PERS Defined Benefit Plan What if the employee has leave without pay (LWOP)? Large blocks of LWOP should be reported through payroll. Scattered hours of LWOP are usually not reported. These are determined by service verification. It’s Not Always That Simple

10. PERS Defined Benefit Plan What if there are fluctuations in reported salaries? Fluctuations in salaries are indicative of breaks in service. DRB reviews salaries when a member has applied for retirement. Fluctuations will result in a request for verification. Add Some Complexity

11. PERS Defined Benefit Plan An employee is vested in PERS, and claims service. In many cases, DRB will ask for verification of the vesting year’s salary so the cost of the claimed service can be calculated. Claiming Service

12. PERS Defined Benefit Plan In certain situations, verification of types of service is required (temporary service claims, workers’ compensation LWOP) to determine service credit. Claiming Service

13. PERS Defined Benefit Plan If a PERS retiree returns to PERS employment, the benefit ceases until termination. Reemployment dates must be promptly reported to avoid overpayments. Reemployed Retirees

14. PERS DB Summary

15. TRS Defined Benefit Plan

16. Hired, then terminated 25 years later One employer Consistent salary trend No breaks in service Verification needed: Termination date Final contract salary The Simplest Scenario

17. TRS Defined Benefit Plan If salary fluctuations are observed; if there is a late hire date; if service ends before the normal end of the school year; if there is a combination of part-time and full-time teaching service; or if there is a question of vesting or service-based retirement eligibility. When is Service Verified?

18. TRS Defined Benefit Plan In many cases, DRB will ask for verification of the base entry contract salary so the cost of the claimed service can be calculated. Claiming Service

19. TRS Defined Benefit Plan Leave of Absence Without Pay (LWOP) Contributions based on the salary that would have been earned had the employee continued to work. The cost to the employee is the employee and employer contributions. Claiming Service

20. TRS Defined Benefit Plan If a TRS retiree returns to TRS employment, the benefit ceases until termination. Reemployment dates must be promptly reported to avoid overpayments. Reemployed Retirees

21. TRS DB Summary

22. PERS/TRS Defined Contribution Plan

23. Hired, then terminated 30 years later at age 65 One employer Consistent salary trend No breaks in service Verification needed: Termination date The Simplest Scenario

24. PERS/TRS Defined Contribution Plan Consistent reporting of earnings and employee and employer contributions Consistent employer payments of contributions to the Health Reimbursement Arrangement (HRA) Consistent reporting of LWOP events The Key Is Consistency

25. PERS/TRS Defined Contribution Plan Employers contribute 3% of the annual average employee compensation of all PERS and TRS participants to the HRA account. HRA contributions remain in the plan in the employee’s name, even if they terminate employment prior to HRA eligibility. HRA Contributions

26. PERS/TRS Defined Contribution Plan If an employee terminates and is not fully vested in the employer’s contributions, the non-vested contributions will be returned to the employer. Returning Employer Contributions

27. PERS/TRS Defined Contribution Plan Service is important to the DCR: Determines vesting for employer contributions Determines service-based retirement eligibility Determines HRA eligibility Determines medical plan eligibility Determines medical premium subsidy percentage Service Verifications

28. PER/TRS DCR Summary

29. Divorce If a member divorces, a specific verification may be needed. PERS – verification of salary from and to a certain date. TRS – verification of salary and days served from and to a certain date.

30. Active Duty Military Service If a member is called to active military duty, it is very important for the employer to correctly place the employee in LWOP. When the employee returns to employment, the period of active duty military service must be claimed (employee submits a written request to DRB). No contributions are required.

31. Service Corrections After verification, a service correction may be needed. In this situation, the employer must pay any deficient employer contributions due. A deficient contributions indebtedness will be established for the employee’s portion.

32. Contribution Reporting Ongoing Corrections Make-whole agreements DCR Disability DCR Death

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