Department of Retirement Systems

PPMS

Vancouver, WA

2008

AgendaDRS Audit

Forms

EligibilityTRS

PERS

Retirees

Questions

DRS Audit

Forms

Forms

Employers must elicit information from all new employees (RCW 41.50.139)

Employer keeps this form

Retirement Status

Forms

New to PERSPlan 2 transferring to Plan 3Plan 3 returning to eligible employment choosing a new rateMember signs and returns form to employer within 90 days of begin dateEmployer mails original form to DRS only if Section 2 is required

Member Information

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

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

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

Forms

Used to notify DRS if a member, beneficiary or retiree has passed away

Employer mails original form to DRS

Notification of Death

Eligibility

Membership Eligibility

Three

steps

to successful

eligibility management Documentation

Determination

Periodic Review

Determination

Determination

Determination

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

PERSExempt from Membership

Independent ContractorsWAC 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

TRS

TRS Plan 1Member

Person who has established membership and has not withdrawn their contributions.

Former MemberPerson who has separated from service and has withdrawn their contributions

536225454

536-22-5454

536225454

536-22-5454

TRS Plan 1 Members

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

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

TRS Plan 1 Former Members

Eligible positionReport in your SBRP if appropriateReport in PERS until TRS Plan 1 membership is reestablished (payback withdrawn TRS Plan 1 member contributions)

Ineligible positionReport in your SBRP if appropriateDo not report on transmittal until TRS Plan 1 membership is reestablished

Hired into a non-teaching position

TRS Plans 2 & 3

Eligible PositionReport in correct system/plan

Ineligible PositionProvide 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

PERS

PERS

New PositionWill meet eligibility definition for two consecutive years

Existing PositionWill 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

PERSThe initial determination of eligibility must be based on the position

Job Share

Eligibility can also be determined by the personEmployees working in more than one ineligible position may be eligible for membership

Employees in an ineligible position cannot be members

PERS Options

New Member Plan Choice

Transfer Option

Membership Chosen

New Members Plan ChoiceNew 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 daysWSIBRate option A, 5%

90 Day report

New Members Plan ChoiceReport 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

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 code3X

535112222

KELLY535-11-2222

Membership Chosen

Member chose PERS Plan 2Cannot transfer to Plan 3 in January

Report member in PERS Plan 2

123456789

123-45-6789 CASEY

Membership Chosen

Member defaulted into PERS Plan 3Report 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

544113232

544-11-3232 JEREMY

Plan 3 Lost EarningsIf employer misses a deduction deduct double on the next reporting period

Potential for lost earningsBe consistent with applicationEmployer or member can notify DRS

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

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 BenefitWAC 131-16-031

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

Documentation

Determination

Documentation

Position ManagementDetermine what positions you have

Assign each position a unique identifierNumbering systems

Track each positionDetermine the position’s eligibility by reviewing the number of hours worked under each unique identifier

DocumentationAll determinations of position eligibility should be documented

Numbering systemPosition Eligibility Worksheet

Determinations must be kept and maintained in a separate file for 60 years

Per established archival retention schedulePayroll register and timesheets

Periodic Review

Documentation

Determination

Periodic Review

Periodic Review

Positions change

Review all less than full-time positions on a regular basis

At least yearly

Periodic Review

Documentation

Determination

SUCCESS

Eligibility

Retirees

Retirees

A person receiving a lifetime, defined benefit

OR

A person becomes a retiree

on

their

Accrual

Date

Lump sum benefit

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

536225454

536-22-5454

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

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

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

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

Retirees

97 TRS Plan 1 onlyNeed email to set flag if contributing to SBRP

Compensation and hours are required

98 Eligible Position

99 Ineligible PositionCompensation and hours are optional

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

Retirees

Hours associated with the following types of compensation are counted against the annual limit

Actual hours workedVacation/sick leave usedPaid holiday

Vacation and personal leave cash outs do not count against the annual limit

Retirees

*Must have justifiable need, use the established hiring process, and keep all records.

Plan Retire Date Wait Period Hour Limit System

PERS 1 < 08/01/03 1 Month1500 Yearly

1900 Life

2 or 3

> 07/31/03

N/A

30 Days

30 Days

90 Days

867 Yearly

867 Yearly

1500 Yearly*

1900 Life

TRS 1

2 and 3 N/A 30 Days 867 Yearly

< 07/22/07

> 07/22/07

30 Days 1500 Yearly

1500 Yearly*

1900 Life45 Days

LEOFF 2** N/A N/A None

PSERS 2 N/A 30 Days 867 Yearly

**Must complete the LEOFF

Plan 2 Retiree Re-employmen

t Form

Questions

Question 1An 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?

Answer 1Determining 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.

Question 2An 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?

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

Question 3An 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?

Answer 3Yes. 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.

Question 4An 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?

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

Question 5An 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?

Answer 5A 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

Question 6An 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?

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.

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?

Answer 7

At the end of the 2nd year it is determined that the eligibility criteria was once again met the Employer must go back to the beginning of the 2nd 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.  

Contacting DRS

DRS Web Sitehttp://www.drs.wa.gov

E-maildrsemployer@drs.wa.gov

TelephoneLocal 360-664-7200 (option 2)

Toll free 1-800-547-6657 (option 6 then option 2)

Thank You

Transmittal ReportingChoice Date

BeginDate

What’s Reportable - LEOFFAuthorized Paid Leave

Retroactive Salary Increase

Longevity Pay

Additional Duty Pay

Shift Differential

Transmittal Reporting