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PSERS PENSION PLAN REPORTING/
GASB 67 FINANCIAL REPORTING
Employee’s Retirement System of Georgia (ERSGA)November 5, 2015
GEORGIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (GASBO)
AUGUSTA GA
Presenters: Flavia Peynado and Carlton Lenoir
AGENDA
PSERS Pension Reporting
Pension Plan Financial Update
GASB 67/68 Annual Timeline Financial Reporting for
Pension Plans Pension Plan
Responsibilities Impact to Employers
Compliance Audits
Compliance File Reporting Compliance Reporting –
Status Update
PSERS REPORTING
Employers’ Responsibilities Deducting, collecting and reporting employee contributions
Reporting Period September to May No reporting for June, July and August
Monthly Reporting deadline All components due on the 1st of each report month
Required components Monthly Summary Report Monthly Employee Detail File Monthly Contribution Payment Pension Compliance File
PSERS REPORTING
www.ers.ga.gov > Employers> Login Registration
Completed Contact Form-must be on file at ERSGA Employer Reporting Quick Reference Guide
Navigate to Employer Page Forms and Information Step by Step Guide to creating the User ID and
Password Employer Desktop
Appears upon logging in Links to Employer Reporting functions
Employer Reporting Website
PSERS REPORTING
PSERS REPORTING
Visit this page to verify the group to enroll new or re-hire
Check Member Plan Eligibility
PSERS REPORTING
Upload Salary or Compliance Detail FileVisit this page to upload the Salary Detail or Pension Compliance file
PSERS REPORTING
Upload Salary or Compliance Detail File
PSERS REPORTING
Salary Detail File Generating or Correcting File
Contact your IT/Payroll Vendor Common Salary Detail File Issues which cause a Rejected File
Incorrect File Name Incorrect File Format Incorrect Member Count Incorrect Characters and Row Length
Data Issues Reporting members on LWOP Missing Eligibility/Employment Date Missing Termination Date Reporting Incorrect SSN
STATEMENT No. 67
FINANCIAL REPORTING FOR PENSION PLANS
PENSION PLAN FINANCIAL UPDATE: June 30, 2015
Plan Funded Ratios- PSERS 82.8% & ERS 72.8% Membership
PSERS – 35,488 (active); 79,468 (inactives); 16,994 (retirees) ERS – 60,419 (active); 84,791 (inactives); 47,180 (retirees)
Pension Benefits Paid (up 5.9% over 2014) PSERS $56,972,000 ERS $1,334,278,000
Net Plan Position PSERS $823,150,000 ERS $12,967,964,000
Money weighted return on investments (investment pool) (5.32%)
Investment rate of return – 3.7% ($609,626,000 investment income)
GASB 67 – ANNUAL TIMELINE
Timeline of Plan/Employer GASB related activitiesGASB 67
and 68January February Mar April May June
Plan Activities
Manualemployersselected forcensus dataaudits
Plan Actuaryissues theGASB 68Reports --
GASB 68reportsaudited by KPMG
Requestattestationreports - due 7/31 –
Send GASB68 employerpackets and notedisclosures toemployers
Request employercontributionConfirmations--
ConductGASB 67webinars
Employer Activities
Provide censusdata for audit
GASB 67 – ANNUAL TIMELINE
Timeline of Plan/Employer GASB related activities (cont’d)GASB 67
and 68July August Sept Oct Nov Dec
Plan Activities
Plan actuaryissues theGASB 67 reports –
Provide employercontributions toauditor, actuaryand SAO
Issue AuditReport
Issue CAFR
Employer Activities
Provideattestationreports to plan
Providecontributionconfirmationletters to plan
GASB 67 – FINANCIAL REPORTING for PENSION PLANS
Effective for Pension Plan financial reporting beginning June 30, 2014 fiscal year – Designed to improve financial reporting by state and local pension plans
Replaced Statements 25 and 50 – Defined benefit plan reporting and note disclosures for DC Plans and Pension Disclosures
Established standards for financial reporting and the required approach to measure the pension liability of employers/non-employer contributing entities
Approach: Accounting ratio of net plan assets available for benefits to total pension liabilities
2014 ERS – 77.99% PSERS – 88.29%
2015 ERS - 76.20% PSERS -87%
GASB 67 – FINANCIAL REPORTING for PENSION PLANS
GASB 67 changed pension reporting for plans administered through trusts – ERS and PSERS are administered through Trusts
Both plans are also cost-sharing multiple-employer pension plans
GASB 67 also required that investment expenses be moved from admin expense to an offset v. investment income
GASB 67-PENSION PLAN RESPONSIBILITES
New Notes Require defined benefit pension plans to include descriptive information: Type of benefits provided Classes of Plan member covered Composition of the pension plan Board of Trustees Pension Plan Investment Policy Pension Plan Investment Allocation
Required Supplementary Information 10 years of sources of changes in the net pension liability Components of Net pension Liability Contributions to the Plan Assumptions used in calculation of actuarially determined
contribution
GASB 67-PENSION PLAN RESPONSIBILITES
Measurement of Pension Liability Requires that the actuary complete a valuation of the total
pension liability every two years If the valuation is not done as of the plans fiscal year end, roll
forward procedures are required to update values as of year-end Allocation to Employers – For GASB 68
Each Governmental employer must include their share of the net pension liability in their financial statements
PSERS – Special Funding Situation ERS Continue to report pension expense (now calculated by plan) ERS Deferred inflows and outflows of resources Source of the calculations above: Census Data from Employers
GASB 67 – IMPACT TO EMPLOYERS
How Census Data impacts employer allocation Total pension Liability, contribution revenues,
and contribution receivables are dependent on the completeness and accuracy of census data
What Census Data items are significant: Date of Birth Date of Hire Years of Service Eligible Compensation Class of Employee Date of termination Employment Status
GASB 67 – IMPACT TO EMPLOYERS
Tools the plan uses to ensure the accuracy and completeness of the significant census data:
Over 200 payroll edits within Pension System Direct access to employer payroll data Trained Employer reporting staff Compliance Audits Compliance File Reporting
GASB 67 – COMPLIANCE AUDITS
Manual Employers Control between the employer and the plan that ensures
that all eligible employees are being reported to the plan It brings a heightened awareness to the importance of
accurate and timely enrollment Each January employers are randomly selected by the plan
– five year cycle Employers are asked to send payroll registers (one month
from the previous fiscal year), and new hire list and terminations
Audit to ensure accuracy of enrollment, hire dates, service in the plan, pensionable pay, contributions and terminations
GASB 67 – COMPLIANCE FILE REPORTING
File Uploaders Control between the employer and the plan that ensures that all
eligible employees are being reported to the plan It brings a heightened awareness to the importance of accurate
and timely enrollment The compliance file should contain employee pay records for
individuals on the “plan covered” payroll but for whom a deduction was not taken
For many employers the file may be blank because those covered by the plan are enrolled – nonetheless – control is in place.
Others in the file can include non-employees, substitutes working less than 60% time, and rehired retirees.
PSERS Employers – file is due monthly on the 1st of the month
GASB 67 – COMPLIANCE FILE UPDATE
192 PSERS Employers 162 have been approved to send production
compliance files 26 BOE using MUNIS that are in testing 4 BOE with in-house payroll systems in testing Please contact Diane Clark if you are one of these
employers [email protected]
CONTACT INFORMATION
Flavia O. Peynado, Operations [email protected]
Carlton W. Lenoir, Deputy [email protected]
Laura Lanier, Plan [email protected]
