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Welcome!
MainePERS 2015 Regional
Employer Trainings
Orono, Maine September 18,
2015
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan Administration• Disability Benefits• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan - MaineSTART
Employer Services
V3/V10 Update (ESS)
Financial Reporting
Closure
Agenda
• Welcome & Housekeeping
• MainePERS Briefly
• Why Are We Here?
Let’s Begin
Todays Presenters
Marlene McMullen-PelsorManager, Employer & Survivor Services
Deanna DoyleRetirement Services Specialist
Ellen HughesDisability Supervisor
Lynn PeaseSurvivor Services
Supervisor
Stephanie FecteauPLD Plan
Administrator
Kathleen AlleyEmployer Services
Supervisor
Sherry VandrellDirector of Finance
Welcome
No Photo
• Please hibernate your technology (Cell phones and other electronic devices)
• Breaks and Lunch
• Photos
• Questions
• Other
Housekeeping
• Independent Public Agency
• Public Pension System
• Financial Institution
MainePERS Briefly
Employer Reporting Work Group
Why we are here…
• We are interdependent
• We want to be of assistance
• Trusted partners to call upon
MainePERS Employers Matter
MainePERS Employers Matter
• Welcome
• MainePERS Briefly
• We Want to Be of Assistance
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Benefits• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan - MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
• What is a Defined Benefit Plan and who does MainePERS administer these plans for?
• Why is determining membership eligibility and accurate reporting so important?
• What are the types of questions or requests for information that I should contact Retirement Services for?
Retirement Services
Defined Benefit Plan
Retirement programs administered by MainePERS
Defined Benefit Plan
• Governor
• Judicial
• Legislative
• State workers
• Teachers
• Participating Local Districts
What is the Defined Benefit Plan?
• Benefits are defined by a specific formula based on years of service and average final compensation;
• Eligibility for benefits is defined by the employee’s age and/or years of service;
• Investment risk is borne by the employer;
• Designed to provide a monthly benefit in a set amount for the retiree’s lifetime.
MainePERS administers Qualified Defined Benefit Plans under 26 USC Section 401(a)
Defined Benefit Plan
Regular & Special PlansRegular Retirement Plan
• Retirement Plan with a Normal Retirement Age of 60/62/65 for Teacher Members 60 or 65 for PLD Members
Normal Retirement Age• Earliest you can retire without a benefit reduction
Special Retirement Plan• Retirement Plan that provides retirement at a younger age with
no reduction.• And/or Provides a higher level of benefits
Cost of Living Adjustment (COLA): Provision that provides an adjustment of up to 3% to all or a portion of a retiree’s benefit annually, once eligible A PLD may or may not have the COLA provision. All Teacher members have the COLA provision.
Defined Benefit Plan
When is a member eligible for Service Retirement Benefits?• Upon meeting service and/or Normal Retirement Age
requirements of their plan;
• Service & Age requirements differ depending on plan
How are benefits calculated?• Based on Average Final Compensation (Average of member’s three
highest years of earnings);
• Years of Creditable Service;
• Age at retirement;
• Applicable benefit factors for the plan(s).
Members should contact Retirement Services if they have questions about qualifying for Service Retirement and/or how their benefits are calculated.
Defined Benefit Plan
Will I be able to live on my defined benefit?
Under most regular plans, at Normal Retirement Age with 25 years of service credit, a member’s defined benefit
under the Full Benefit Option would be 50% of his/her average annual income.
Retirees will need 70%–90% of their current income to maintain their standard of
living in retirement.
Encourage your employees to START saving NOW to supplement their MainePERS benefit so that they can afford a comfortable retirement tomorrow!
Ways to Supplement:
• Accrue service credit in excess of 25 years
• Social Security or other Federal Pension Benefits
• Personal Retirement Savings Accounts- MaineSTART
Retirement Income
Determining Membership Eligibility
Who is Eligible?
Mandatoryvs.
Optional Membership
Defined Benefit Plan
Determining Membership Eligibility - Teachers
Membership is MANDATORY for public school teachers in Maine as defined by statute.
Exception: Membership is OPTIONAL for Substitute Teachers!
1) Department of Education review & response
2) MainePERS reviews detailed job description and employee’s past history
Defined Benefit Plan
Determining Membership Eligibility - PLDs
Who is covered?• Determined by Employer Exclusions;• Statutes & Rules
When is membership optional?• Elected Officials or Officials appointed for fixed terms;• Employee is covered by Social Security;• Employee has option to participate in Alternate Retirement
Plan that meets statutory requirements;• Chief Administrative Officer of PLD;• Any employee not subject to Municipal Public Employees
Labor Relations Law;• Employee in service on the date employer begins participation
with MainePERS
Defined Benefit Plan
Determining Membership EligibilityOptional Membership & Importance of One-Time Elections
What does this mean for employees with optional MainePERS membership?
Elections to participate or not, that are in effect on July 12, 2010 or first made after are irrevocable and stand for all current and any future employment with that employer.
Employers are responsible for offering membership to eligible employees, documenting the election
& reporting it to MainePERS.
Defined Benefit Plan
Required Membership Reporting & Forms
MainePERS uses the information you provide on membership forms & payroll filings to:
• Grant service credit;
• Determine vesting status & benefit eligibility:
• Calculate retirement benefits for your
employees - our members
Defined Benefit Plan
Why is this information important?
Reporting Earnable Compensation
• What is Earnable Compensation?
• Why does it matter?
• What if I am not sure if a payment is earnable or not?
Contact Retirement Services
Defined Benefit Plan
When should I submit a Personnel Status Change Form?
To report a Leave of Absence, submit a PSC when the leave begins AND ends. Also, submit when the type of leave changes.
Reporting- Membership Forms
Defined Benefit Plan
• Termination• Separation• Death• Leave of Absence
When do I submit the Employer Preliminary Benefit Certification Form (PB Cert Form)?
Submit upon request from MainePERS, but only AFTER the employee has terminated.
Reporting- Retirement Forms
Defined Benefit Plan
Timeliness is important.
When do I submit the Vacation and Sick Leave Reporting Form?
Reporting- Retirement Forms
Submit upon request from MainePERS, but only AFTER you have issued the final pay to your employee.
Call Retirement Services with questions about completing this form.
Defined Benefit Plan
Service Retirees Returning to Work with the ‘Same’ Employer
1) Termination of ALL MainePERS-covered employment is required in order for your employees to be eligible for retirement benefits.
2) Employers must report retirees returned to work.
3) Employees may not know what plan they retired from.
Defined Benefit Plan
What does ‘Same’ Employer mean for this purpose?
For retired State Employees and Teachers - Any State of Maine employer (including the Maine Community College System) or any public school in Maine if employed as a “teacher”.
For those retired from the PLD Consolidated Plan - Any PLD participating in the Consolidated Plan.
For those retired from a non-Consolidated PLD - The specific, non-Consolidated PLD the member retired from.
Call Retirement Services for information about what plan the employee you are hiring retired from and if they are returning to work for the ‘Same’ Employer.
Defined Benefit Plan
Service Retirees Returning to Work with the ‘Same’ Employer
Early Service Retirees
For Retirees who retired early with an age reduction and are returning to work before reaching Normal Retirement Age.
• NO CONVERSATION BEFORE RETIREMENT about returning to work after retirement with any ‘same’ employer.
• Must be 30 days between termination of employment before retirement & re-employment AFTER effective retirement date.
• Cannot work more than 90 days per year.
Defined Benefit Plan
‘Of Age’ Service State/Teacher Retirees
Must be 30 days between termination date before retirement & date return to work after retirement effective date.
Retired from a classroom based position?
Employers determine whether position is classroom based or not.
Defined Benefit Plan
Yes NoCan return to classroom based position for 5 years at full salary & remain in classroom based position for another 5 years at 75% of salary; OR
Can return to classroom based or non-classroom based position for 5 years at 75% of salary
Can return to non-classroom based position for 5 years at 75% of salary
‘Of Age’ Service Retirees PLD, Legislators & Judges
• Cannot return to MainePERS covered employment until on or after effective retirement date;
• No other restrictions on time worked or pay.
Defined Benefit Plan
What is the Defined Benefit Plan?
• Benefits are defined by a specific formula that is based on years of service and average final compensation;
• Eligibility for benefits is defined by the employee’s age and/or years of service;
• Investment risk is borne by the employer;
• Designed to provide a monthly benefit in a set amount for the retiree’s lifetime.
MainePERS administers Qualified Defined Benefit Plans Under 26 USC Section 401(a)
Defined Benefit Plan
Why is determining membership eligibility and accurate reporting so important?
Employers are responsible for placing employees in the correct retirement plan.
MainePERS uses the information reported to:
• Grant service credit;
• Determine vesting status & eligibility for benefits;
• Calculate the benefit amount your employee receives in retirement
Defined Benefit Plan
Reporting errors can be costly for Employers, Members, the Plan and/or MainePERS.
When would I call Retirement Services with a question or request for information?
• Is the employee eligible to participate in MainePERS?
• Is this payment earnable compensation for retirement?
• What MainePERS benefits are available to my employee?
• What membership or retirement forms should I submit and/or how do I complete them?
• My new hire is receiving benefits from MainePERS, should I report him as a retiree returned to work ?
Defined Benefit Plan
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Benefits• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial ReportingClosure
Agenda
Responsibilities
• State Social Security Administrator for Maine
• Administration of MainePERS Plans for its Participating Local District (PLD) Employers:
Joining/withdrawing from MainePERS
Changing a service retirement plan
Adding the COLA provision
Membership eligibility
• Administration of MaineSTART - the MainePERS sponsored 457(b) and 401(a) Defined Contribution Plans
PLD Plan Administration
What is a Federal Section 218 Agreement and does your entity have one?
Social Security – 218 Agreements
Voluntary Agreements for
Coverage of State and Local Employees
PLD Plan Administration
Social Security and Medicare
Do your employees pay into Social Security and if so, under what basis?
• Federal Section 218 Agreement All employees pay SS, unless excluded
• Default SS (Section 210)No 218 Agreement but the employer paid SS prior to participating in MainePERS - some employees are grandparented for SS coverage only (no MainePERS coverage)
• Coverage for part-time, seasonal, or temporary employees (P,S,T) employees in lieu of MainePERS.
PLD Plan Administration
Social Security and Medicare
For questions about whether or not earnings are subject to FICA (Social Security and Medicare), contact:
Stephanie FecteauState Social Security Administrator for Maine
For questions relating to Social Security and Medicare benefits, contact:
Social Security Administration
PLD Plan Administration
MainePERS PLD Plan Administration includes working with public employers on:
• Joining/withdrawing from MainePERS
• Changing a service retirement plan
• Adding the COLA provision
• Membership eligibility
• Employer related issues
PLD Plan Administration
MainePERS PLD Employers include:
• Counties, municipalities, quasi-municipal corporations, or incorporated instrumentality of the State or of one or more of its political subdivisions
• Water/Sewer Districts
• School Districts/Charter Schools
• Libraries
• Housing Authorities
• Associations
PLD Plan Administration
MainePERS PLD Plans - StatisticsAs of July 1, 2014
Stand alone PLDs and employers in the PLD Consolidated Plan
Employers 304
Participants 19,019
Benefit Recipients 8,524
Total Funding Ratio 91.2%
PLD Plan Administration
Employers may join MainePERS as a new PLD, or change their plan (for existing PLDs) effective January or July 1st of any year by following the process below:
To join the plan, or to make a change, the employer must provide MainePERS with a certified copy of the vote taken to join or change the plan. A ratified collective bargaining agreement is not sufficient.
Joining MainePERS as a PLD, or Changing a Plan
PLD Plan Administration
Who has Authority?School Districts vs. School Department as an Employer
Reminder: MainePERS plans and provisions may only be adopted by an employer’s governing body.
School District = Has full authority. A school district is a legal entity.
School Department = Has no authority - jurisdiction is under the governing body of the municipality. The school is a “department” of the municipality, not a separate legal entity.
PLD Plan Administration
PLD vs. State/Teacher Retirement ProgramsDifferences in the Programs
• Normal Retirement Age
• Contribution Rates
• Group Life Insurance
• COLA
• Portability/same employer
• Governance
• Social Security Coverage
• Health Insurance
PLD Plan Administration
Governance of the PLD Program
• The PLD Advisory Committee Monitors plan funding and recommends annual employer rates to
the MainePERS Trustees Recommends plan design changes to the MainePERS Trustees
• MainePERS Board of Trustees Adopts rates or sends back to Committee for specific concerns Submits plan design changes to the Legislature or sends back to
the Committee for specific concerns
• Maine Legislature Discusses and adopts or does not adopt plan changes
PLD Plan Administration
MEMBER: NOMINATED BY:
• David Barrett Maine Municipal Association • Vacant, awaiting appointment Appointed by Governor• Steven Butterfield Maine State Employees Association • Rick Cailler Professional Firefighters of Maine• Rob Walker/Charles Betit Maine Education Association• John Eldridge Maine Municipal Association• Traci Place Teamsters Union Local #340• Janice Kimball Maine Municipal Association • John Schlosser Maine School Management
Association• Sylvia Hebert AFSCME, Council 93• Dr. Thomas J. Ward Maine School Management
Association• Sandy Matheson, Exec. Director Ex-officio, MainePERS
PLD Plan Administration
MainePERS PLD Advisory Committee
Re-cap of July 1, 2014 Changes to the PLD Consolidated Plan
• Contribution Rate Increases
• Cost of Living Adjustment
• Normal Retirement Age is 65 for new members of the Consolidated Plan on/after July 1, 2014
• For those with a Normal Retirement Age of 65, age-reduction for retiring early is 6% per year
PLD Plan Administration
Employer Contributions
• Established each year, based on results of the annual actuarial valuation For copies of Annual Valuation Reports visit:
www.mainepers.org/Employer
• Subject to market volatility Assumed rate of return = 7.125%
PLD Plan Administration
How Defined Benefit Funding Works
Member contribution + employer contributions + investment returns - benefit payments = trust fund balance
• Each year, the actuary determines what it costs to provide the benefits earned in the upcoming year (normal cost)
• The actuary also calculates how much will be owed to each member for work through the end of the fiscal year and discounts it back to present value using the long-term investment earnings assumption (7.125%) This liability is compared to the actuarial value of assets on hand to
determine the over/underfunding of the plan (UAL)
• Normal cost and any UAL cost are converted to % to be applied to payroll throughout the year (contributions)
• The employer and employee pay these costs as pre-determined
PLD Plan Administration
Responsibilities Recap
• State Social Security Administrator for Maine Employer liaison for coverage and tax issues between the
State, IRS, and the Social Security Administration
• Administration of MainePERS plans for Participating Local Districts Employer liaison
PLD Plan Administration
We’re here to help! Should you have any questions, please contact us.
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Benefits• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
Disability Benefits
• One of the Benefits available to members of the Maine Public Employees Retirement System (MainePERS) is the Disability Retirement Program.
• Not a supplemental insurance – a retirement benefit.
• Eligible members receive an income benefit and continue to accrue creditable service until they are able to return to employment or change over to service retirement.
Who is eligible for Disability Benefits?
Disability Benefits
• You must be a member and have not received any full refund of contributions.
• You must have a mental or physical incapacity that makes it impossible to do your job.
• The condition(s) must result in permanent functional limitations that makes it impossible to perform the duties of your employment position.
Disability Benefits
Who is eligible for Disability Benefits?
• You must meet the terms of your specific disability retirement plan as it relates to any age restrictions or other required provisions.
• You may not have a service retirement and a disability benefit at the same time – you are ineligible for disability benefits after receiving service retirement benefits or if you have refunded your contributions.
Disability Benefits
• At the time you became incapacitated, you must have been on your employer’s payroll and made contributions to MainePERS.
Who is eligible for Disability Benefits?
• Job modifications – is your employer willing to make some modifications that would allow you to do your job or provide another position of equal pay and stature?
• You may not be eligible for disability benefits if you have fewer than five years of continuous creditable service preceding your last date in service.
• If you have been incapacitated for more than 2 years, you must meet additional criterion.
Disability Benefits
Who is eligible for Disability Benefits?
• You should apply for disability benefits as soon as you become incapacitated, as MainePERS generally can not pay retroactively for more than six months prior to the date of the application.
• Initial Application process takes approximately four to six months.
• You may apply even if you have a pending Worker’s Compensation claim.
When to apply
Disability Benefits
• If you receive Worker’s Compensation or Social Security disability (PLDs who pay into social security) for the same condition as MainePERS the benefit will be offset.
• Employer Report with job description, most recent performance appraisal, report of any disciplinary actions, last 12 months sick and vacation usage and any medical documentation
• Employer Interview – information regarding any difficulties the member is/was having performing job duties, clarification of duties on job description
• Termination/Last day in pay status – vacation and sick leave reporting form and Human Resource Profile (HRP)
Employer Information
Disability Benefits
• This is a Retirement Benefit
• Specific Eligibility Requirements
Summary
Disability Benefits
• For Questions about Disability Retirement or for an application package please call 1-800-451-9800 or visit our website at www.mainepers.org
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits - PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Disability Benefits
Survivor Benefits
Let’s talk about…
• Who may be entitled to benefits?
• What benefits may be available?
• When benefits may be effective?
Survivor Benefits
Ordinary Death Benefits
Ordinary death benefits are available if, when the member dies, they are:
• In service
• Receiving a disability benefit
• Not in service and have contributions remaining at the system
Survivor Benefits
Designation of Beneficiary Pre-Retirement Death
This form is used to designate a beneficiary(ies) to receive any survivor benefits in the event of the employee's death prior to service retirement.
Survivor Benefits
Types of benefits available to Beneficiaries
• A Lump-sum RefundA lump-sum refund is a refund of the deceased’s contributions and accrued interest.
• A Survivor BenefitA Survivor Benefit is a monthly benefit available based on the number of beneficiaries designated and their relationship to the deceased.
• The Reduced Retirement AllowanceThe reduced retirement allowance is a calculated monthly benefit which uses the deceased’s age, average final compensation, creditable service, and age of the beneficiary(ies) in the calculation.
Survivor Benefits
Accidental Death
Death as a result of an injury arising out of, and in the course of, employment
• Only available to spouse and dependent children
• Offset by Workers’ Compensation received by spouse and dependent children
Survivor Benefits
We talked about…
• Who may be entitled to benefits?
• What benefits may be available?
• When benefits may be effective?
Survivor Benefits
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
Group Life Insurance
Let’s talk about…
• Who is eligible for coverage?
• What coverage is available?
• When coverage is available?
Group Life Insurance
• Term Life with Accidental Death/Personal Loss
• Enroll without medical screening
• Payroll deduction
• Basic into retirement
Group Life Insurance
StatisticsActive Employees 31,800
Have Supplemental Coverage 10,000
Have Dependent Coverage 7,500
Retirees with Coverage 18,200
Enrollment Eligibility
• Permanent Full and Part Time Employees who work 20 hours or, 2½ normal working days
• Within 31 days of first eligibilityEvidence of Insurability is required after 31 days.
• If employee refuses coverage, still submit the application through ESS.
Group Life Insurance
Welcome Letter
• Coverage they elected and level
• Encourage them to complete a Designation of Beneficiary form
• Direct them to Certificate of Coverage FAQs
• Third-Party Designation form
Group Life Insurance
Levels, Rates, PremiumsWe take the annual compensation you provide, along with the corresponding GLI rate to determine the monthly premiums.
We then generate your monthly bill as seen within ESS.
Group Life Insurance
The Life of the Employee
Group Life Insurance
• May increase coverage
• May decrease coverage
• Leave of absence
• Termination
• Retirement
• Death
Termination of Employment
When you submit a PSC form for a terminating member, MainePERS will offer the participant the opportunity to continue coverage at their own expense.
Group Life Insurance
You CAN take it with you when you go!
Retirees may be able to continue their basic Group Life Coverage into retirement at no additional cost.
This amount is reduced annually on the anniversary of the date of retirement at the rate of 15% per year to a minimum of 40% of the initial amount that continued into retirement or $2,500, whichever is greater.
3-YEAR AVERAGE OF $28,000FROM THROUGH AMOUNT
7/1/2014 6/30/2015 $28,000 (full coverage)
7/1/2015 6/30/2016 $23,800 (85% of 28,000)
7/1/2016 6/30/2017 $19,600 (70% of 28,000)
7/1/2017 6/30/2018 $15,400 (55% of 28,000)
7/1/2018 And thereafter $11,200 (40% of 28,000)
Group Life Insurance
An Unfortunate Event
• MainePERS processed approximately 1300 reported deaths in fiscal 2015.
• Approximately 600 had Group Life Insurance Coverage.
• Response to a reported death is generally less than one week.
• Claims are generally processed within 2 weeks of receipt.
Group Life Insurance
Designation of Beneficiary Group Life Insurance
This form is used to designate or change beneficiary(ies) under the Group Life Insurance Program.
Group Life Insurance
We talked about…
• Who is eligible for coverage?
• What coverage is available?
• When coverage is available?
Group Life Insurance
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan - MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
Defined Contribution PlanMaineSTART
PLD Plan Administration
MaineSTART
This presentation is for information and illustrative purposes only. MainePERS does not provide investment advice or make investment recommendations.
This presentation uses assumptions, including assumptions about rates of return. If these assumptions turn out to be inaccurate, the results will vary.
All investments have risk. Past performance of investments does not guarantee future performance.
PLD Plan Administration
MaineSTART
Description PLD Defined Benefit (DB) Defined Contribution (DC)
Employee Contribution 7.5% of CompensationIRS Maximum for 2015 =
$18,000
Employer Contribution 8.9% of Compensation Optional
Contributions and Interest are Federal Tax Deferred
Yes Yes
Contributions and Interest are State Tax Deferred
No Yes
BenefitsBased on average final compensation, years of
service, and age
Based on participant’s accumulated balance
InvestmentsInvested according to
MainePERS investment policyParticipant responsible for
investment election
Investment ResultsAffects funding level of the
planAffects employee’s ultimate
benefit
PLD Plan Administration
Why participate in the MaineSTART DC Plan?
• Tax Advantage in Current Year
• Tax Deferred Savings Growth
• Retirement Income
• Simple investment selection
• Low cost funds
• MainePERS commitment to customer service
• Trusted, local manager of your retirement funds since 1942
PLD Plan Administration
MaineSTART DC Plan- StatisticsAs of July 31, 2015
401(a) and 457 (b) Defined Contribution Plans
Employers 66
Participants 984
Assets $27,398,316
PLD Plan Administration
MainePERS
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
• Changing Roles
• Secure Data
• Providing Service You Need
Employer Services
Changing Roles
• Less focus on technical application
• More focus on support and Customer Service Money Data Service
Employer Services
Rates
Effective with payrolls paid in July - similar to what happens with W2s at tax year end
New Plan rates effective July 1st
Employer Services
Rates
Where can you find the current rates?
http://www.mainepers.org/Employers/Employer_Mainpage.htm
Employer Services
Employer Statements
ER Location: Retirementville
You can view your Employer Statement under the:
Employer Management > Review Payroll Reports, Billing, History & Payments> Documents tab.
Employer Services
Employer Self Service Desktop Technical Specifications
http://www.mainepers.org/Employers/Employer_Update.htm
Employer Services
Contact & User information
We need your help!
Keeping your contact information up-to-date, allows us to contact you quicker & more efficiently.
• Employer Location Address, Phone, Email
• Contacts Name, Title, Role
Employer Services
Customer Service
One MainePERS reporting contact
Simplifying service for you
Group LifeBilling
PayrollProcessing
Employer Self Service
Employer Services
Employer Training Program
MainePERS offers training for Teacher and PLD payroll and human resources personnel at our Augusta office.
Employer Services
Employer Training Program
• MainePERS’ Disability• Group Life Insurance• Survivor Benefits • Retirement Services• Employer Self Service (ESS) (forms and payroll reporting requirements)
• Employer Self Service (ESS) (forms and payroll reporting requirements)
Employer Services
Full-day training is an overview of:
Half-day training is an overview of:
Find our Employer Training schedule at:http://www.mainepers.org/Employers/Employer_2015Training.htm.
Our Focus Is On You!
Continues to change . . .
Maintaining data securely . . .
Providing service you need
Contact Employer Services at:1-800-451-9800 ext. 3200 or (207) 512-3200
Employer Services
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan- MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
Introduce V3 Version 10
Actuarial Link to Financial Reporting
New Financial Reporting Standards
Updating to V3 Version 10
The same software, just a newer version.
V3 Update
Why the upgrade?
• Security
• Performance
• Improved functionality
V3 Update
Implementation MethodologyData Conversion
• Data from the existing V3 version is being staged and assigned storage locations within the new version.
• Data does not need to be converted from one form to another as with the previous implementation from legacy systems to V3.
V3 Update
Implementation Methodology
Vitech, the software vendor, is migrating the existing data into the new version module by module. MainePERS then tests and reviews the results with Vitech for accuracy.
There are over 60 sprints to be conducted!
V3 Update
Timeline and Current Status
Current Timeline:
Kick-off October 2014
First Look December 2014
First Round of Testing March 2015
Second Round of Testing July/August 2015
• In-house Instance Expected Fall 2015
• First ESS Work Scheduled to Begin November 2015
• Anticipated Go-Live Winter 2016-2017
V3 Update
Welcome
Welcome & Brief Overview of MainePERS
Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher
Group Life Insurance
Defined Contribution Plan - MaineSTART
Employer Services
V3 Update
Financial Reporting
Closure
Agenda
Actuarial Link to Financial ReportingGovernmental Accounting Standards Board – GASB
Pension Standards Other Post - Employment Benefits - OPEB
Financial Reporting
Actuarial Link to Financial Reporting
Financial Reporting
Census Data
Retirement
Date of Hire
Date of Birth
Full-Time Part-Time
Member benefits are calculated based on the data you provide throughout their employment history
The total pension liability is also calculated based on the data provided along with other actuarial assumptions, including the discount rate
Census data must be audited because of the relationship it has on the liability being calculated and now reported
Financial Reporting
The assumed rate of return used to project investment returns over the long term.
Discount Rate
For Funding:
Assumed Rate Established by the Plan Administrator.
What Rate to Use?
For Financial Reporting:
It Depends.
Financial Reporting
Governmental Accounting Standards Board – GASBChanges in Financial Reporting for Pensions
The Governmental Accounting Standards Board (GASB) has approved several new standards that impact MainePERS and many of its participating employers.
• GASB Statement 67: Financial Reporting for Pension Plans
• GASB Statement 68: Accounting and Financial Reporting for Pensions.
• GASB Statement 71: Pension Transition for Contributions Made Subsequent to the Measurement Date.
Financial Reporting
Governmental Accounting Standards Board - GASB
GASB Statement 68: Requires employers who participate in defined benefit pension plans to recognize a net pension liability on their financial statements.
The net pension liability is defined as: “the total pension liability minus the pension plan’s fiduciary net position.”
Cost-sharing employers will report their proportionate share of the net pension liability for the plan as a whole.
Financial Reporting
Governmental Accounting Standards Board - GASB
Issues to consider with GASB 68:
• Measurement Date vs. Reporting Date
• Schedules of Employer Allocations – Audited
• Employer Specific Liabilities
• Notes and Disclosures
• New Required Supplemental Info (RSI)
• Covered Payroll
Financial Reporting
Governmental Accounting Standards Board - GASB
• Special Funding Situations In-kind Revenues
• Agent Employers
• First year implementation Prior period adjustment or restatement?
• Contribution After the Measurement Date (GASB 71)
Financial Reporting
Governmental Accounting Standards Board - GASB
It is important to note that the changes being required by GASB are for financial reporting only. They do not change the way contributions are calculated.
MainePERS will continue to work with our actuaries and Board of Trustees on funding policy and contribution requirements.
Financial Reporting
Governmental Accounting Standards Board - GASB
GASB Statement 73: Accounting and Financial Reporting for Pension and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
Governmental Pension Plans (DB) not covered by GASB 68.
Financial Reporting
Other Post-Employment Benefits - OPEB
GASB Statement 74: Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.(Statement 74 replaces GASB Statement No. 43)
GASB Statement 75: Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. (Statement 75 replaces the requirements of GASB Statement No. 45)
Financial Reporting
What to Remember
1. If you are a governmental employer and you participate in a defined benefit plan administered by MainePERS, these standards apply to you. If you are not the person responsible for financial reporting at your employer, please pass on this information.
Sherry Vandrell, Director of Finance207-512-3320
Financial Reporting
2. We didn’t write the standards.
3. We, at MainePERS, are here to help! Should you have any questions, please call us.
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