GSEPS Employer Training

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GSEPS Employer Training
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Agenda

• What Is GSEPS?
• GSEPS Pension
• GSEPS 401(k) Savings Plan
• Peach State Reserves
• Comparison of Retirement Plans
• Transferring Membership to GSEPS (Opt-In)
• Employee Education

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Agenda

• GSEPS Employer Responsibilities
• Enrolling New Employees
• GSEPS PeopleSoft Set-Up
• Rehires Which Retirement Plan?
• Enrolling Opt-Ins
• Reporting Payroll to ERS (Defined Benefit)
• Reporting Payroll to ING (401(k))
• Implementation Schedule

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What Is GSEPS?
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What Is GSEPS?

• Senate Bill 328 2008 Legislative Session
• GSEPS All NEW employees hired on or after
  1/1/09
• Provide Retirement that appeals to emerging
  workforce
• Portable
• Flexible
• Combine Traditional Pension with a 401(k)

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GSEPS Pension

• Similar to current pension plan
• Guaranteed Annuity for vested members
• Pension based on salary and years of service
• Same vesting 10 years creditable service
• Same service and early retirement eligibility
• Same employee contribution 1.25 (old plan
  different)

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GSEPS Pension

• Different from current pension plan
• Reduced Benefit Factor 1 instead of 2
• No Life Insurance (GTLI) included (no premium of
  0.25)
• Increased service needed for Disability
  retirement and Survivor retirement no
  projections/tiers
• Reduced Employer Contribution rate of 6.54

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GSEPS 401(k) Savings Plan

• Uses Peach State Reserves 401(k) Plan
• 401(k) includes Employer Match, subject to
  vesting
• Separate Vesting Period from Pension Plan
• 5 Years at 20 for each completed year of service

Market Value
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GSEPS 401(k) Employer Match

• Match dollar for dollar on the first 1 of
  contributions (100 match)
• For contributions from 2 through 5, match is
  0.50 on the dollar (50 match)
• Only the first 5 of contributions will be
  subject to employer match
• Total match will not exceed 3 of compensation
• Employees may contribute more, subject to plan
  maximums
• Match invested each pay period

No Loans in state 401(k)
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GSEPS 401(k) Savings Plan

• Automatic Enrollment at 1 upon hire unless Opt
  Out of 401(k) (See Employer Responsibilities)
• Employees have 90 days to discontinue and get a
  refund
• Refund at current market value match is
  forfeited
• Request refund through ING not payroll
• After 90 days, can still stop, but NO refund
• Can re-enroll at any time through ING
• All contribution rate changes made by employee
  through ING

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Peach State Reserves for NON-GSEPS Employees

• No change to process
• Employees enroll and change directly with ING

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Peach State Reserves for All Employees

• After Auto-enrollment or Opt-Out, employees make
  all changes directly with ING
• GSEPS employees can also participate in 457 (no
  match)
• Switch to contributions for both 457 and 401(k)
• Fee reduction in 2009 - 8 per quarter
• No Annual Leave deductions into 401(k) use 457
  only
• 401(k) change requests move to daily feedback
  from ING 457 still monthly

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Retirement Plan Comparison
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Retirement Plan Comparison
Old Plan members have slightly different
contribution rates and benefits.
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Transferring Membership to GSEPS(Opting-In)
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Transferring Membership to GSEPS (Opting-In)

• Current employees may transfer membership to
  GSEPS
• Opting-In to GSEPS is an irrevocable decision
• Key Differences
• Pension Benefit Formula cut in half (2 to 1)
• Years of service x Highest average salary x 1
• Pro-rated benefit calculation

Example of Pro-Rated benefit if transferred to
GSEPS
Highest average salary equals highest average
continuous 24 months of earnings. Assumes
Election of Maximum Retirement Option
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Transferring Membership to GSEPS (Opting-In)

• Key Differences (continued)
• Loss of Group Term Life Insurance Coverage
• Increased Length of Service needed for Disability
  and Survivor retirement no projections/tiers
• Match on 401(k) of up to 3 of compensation
• Vesting for 401(k) match begins as of date of
  Opt-In, NOT original date of hire

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Transferring Membership to GSEPS (Opting-In)

• Current Peach State Reserves Participants
• 457 Not eligible for match
• GSEPS enrollment will not cancel 457
• Must elect new 401(k) contribution amount as a
  on Opt-In form
• Vesting for 401(k) match begins as of date of
  Opt-In, NOT original date of hire

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GSEPS Opt-In Election

• Obtain Opt-In Forecast from ERS Account Access
  website
• Attend Opt-In Informational Meeting
• Opt-In Form available December 2008 ERS website
• Opt-In Effective no earlier than 1/1/09
• No time limit on Opt-In can elect at any time
  in the future

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GSEPS Employee Education
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GSEPS Employee Education

• www.ersga.org GSEPS Opt-In
• ERS Member Newsletter Download from ERS website
• Opt-In Forecast Calculator ERS website
• Opt-In Informational Meetings schedule on ERS
  website
• Through December
• Statewide

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GSEPS Employer Responsibilities
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GSEPS Enrolling New Employees

• Rehires ALWAYS Verify Retirement Plan
  Eligibility with ERSGA
• Defined Benefit Participation is Mandatory
• All New Hires should be given
• GSEPS Brochure
• 401(k) Opt-Out Form (keep on file)
• Pension Plan Beneficiary designation made online
  www.ersga.org (replaces Membership
  Application)
• 401(k) Beneficiary designation made online
  http//myGApsr.ingplans.com

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GSEPS Enrolling New Employees

• 401(k) Contribution Can Opt-Out
• If no 401(k) Opt-Out form completed within 5
  days of hire, employee must be Automatically
  Enrolled in 401(k) with a 1 contribution.
• Enter GSEPS Enrollment in PeopleSoft Pensions
  Plan Panel
• Select either Opt-Out or Elect for 401(k)
• If Opt-Out of 401(k) - can always enroll later,
  by contacting ING

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GSEPS PeopleSoft Set-Up
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GSEPS PeopleSoft Set-Up

• Once new hire is entered, go to Benefits gt Enroll
  in Benefits gt Pension Plans

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GSEPS PeopleSoft Set-Up

• Select Plan Type 82 from the lookup prompt

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GSEPS PeopleSoft Set-Up

• Enter the effective date of the pension plan
  enrollment

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GSEPS PeopleSoft Set-Up

• Click the lookup prompt for the Benefit Plan

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GSEPS PeopleSoft Set-Up

• Select the appropriate Pension Plan (All GSEPS
  plans start with E2G)

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GSEPS PeopleSoft Set-Up

• When GSEPS plan is selected, a new field appears
  in the Pension Plans page

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GSEPS PeopleSoft Set-Up

• The default value is Elect, but if the employee
  Opts Out of the 401(k), click the Opt Out
  button.

• If Elect button is selected and page is saved
  (by clicking OK), user is prompted to enter
  Auto Enrollment rate of 1 into the GSEPS 401(k)
  in the payroll system.

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GSEPS Enrolling New Employees
Rehire? Verify Retirement Plan Eligibility with
ERSGA at 404-350-6300
Questions? ERS 404-350-6300 ING 401(k)
800-698-7719
If not using PeopleSoft for payroll, enter
401(k) enrollment in your payroll system.
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Rehires Which Retirement Plan?
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Rehires Which Retirement Plan?

• Vested when they left (10 years minimum svc)
  rehire under original plan
• Took refund rehire under GSEPS (even if
  repurchased)
• Not vested when they left, but no refund
• Break in Service greater than 4 years rehire
  under GSEPS
• Break in Service 4 years or less rehire under
  original plan
• Rehire? Verify Retirement Plan Eligibility with
  ERSGA at 404-350-6300

Remember pro-rated benefit calculation prior
service under ERS will be calculated at 2 for
retirement benefit
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Enrolling Opt-Ins
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GSEPS Enrolling Opt-Ins

• Review GSEPS Opt-In Election Form for
  Completeness
• Effective Date always first day of month that
  contributions begin
• 401(k) Contribution Election
• Employee Signature
• Enter GSEPS Enrollment in PeopleSoft Pensions
  Plan Panel
• Enter 401(k) Contribution Election in Payroll
  system
• Must terminate any existing active 401(k)
  enrollment
• FAX Opt-In Election Form to BOTH ERS and ING

Fax Numbers ERS 404-350-6305 ING
800-596-5715
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GSEPS Enrolling Opt-Ins
Fax Numbers ERS 404-350-6305 ING
401(k) 800-596-5715
If not using PeopleSoft for payroll, enter
401(k) enrollment in your payroll system.
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GSEPS Payroll Reporting (Defined Benefit - ERS)
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GSEPS Payroll Reporting (Defined Benefit - ERS)

• Employers will complete a separate ERS-GAR Salary
  and Contribution Summary Report online each month
• ACH data will be copied from ERS-AR report
• GSEPS detail will be reported in FTP file with
  Old Plan and New Plan data.

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GSEPS Payroll Reporting (Defined Benefit -
ERS)Employer Desktop
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GSEPS Payroll Reporting (Defined Benefit -
ERS)Maintain Salary and Contribution Report
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GSEPS Payroll Reporting (401(k) - ING)
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GSEPS Payroll Reporting(ING)

• Feedback reports will now show , rather than
• 401(k) feedback daily (January), 457 still
  monthly
• Revocations both plans still daily
• Spreadsheet modified to accommodate
  contributions
• Continue to fax Control Total Sheets and
  Deduction Registers
• Total Amount Reported will now include Employer
  Match

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New Feedback Report Format
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Current Feedback Report
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New Feedback Report Starting January
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GSEPS Spreadsheet Payroll Reporting (401(k) -
ING)
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Summary of Existing Spreadsheet Functionality

• PSR 457/401(k) Plan
• Enter the 457/401(k) contribution dollar amount
  for each person for the applicable pay period
• Once all amounts are entered, click Create
  Payroll File
• File is created on the C drive and delivered to
  ING via Data Transfer

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Current PSR 457 Plan Worksheet
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Current PSR 401(k) Plan Worksheet
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Summary of New Spreadsheet Functionality

• Loading new disc will automatically update
  existing spreadsheet with GSEPS and percentage
  contribution functionality
• Existing data will be maintained no re-entry
  necessary
• Transfer up to 3 files, rather than 1 or 2

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Summary of New Functionality 457 Plan

• Enter the amount deducted in the Elected 457
  Column
• Calculated 457 Cont Amt. Column will auto-fill
• Other columns can calculate from , but your
  payroll system should do this and give you the
  amount.
• Once all amounts are entered, click Create
  Payroll File
• File is created on the C drive and delivered to
  ING via Data Transfer

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Updated 457 Plan Worksheet
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Summary of New Functionality 401(k) Plan (no
Emp. Contrib)

• Enter the amount deducted in the Elected 401(k)
  Column
• Calculated 401(k) Cont Amt. Column will auto-fill
• Other columns can calculate from , but your
  payroll system should do this and give you the
  amount.
• Once all amounts are entered, click Create
  Payroll File
• File is created on the C drive and delivered to
  ING via Data Transfer

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Updated 401(k) Plan Worksheet
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Summary of GSEPS Functionality

• Employee Contribution
• Enter the GSEPS Elected as deducted from
  payroll
• Calculated Cont Amt column will auto-fill
• Employer Match
• Enter the Calculated Employer Cont Amt as
  calculated by your payroll system
• Once all amounts are entered, click Create
  Payroll File
• File is created on the C drive and delivered to
  ING via Data Transfer

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GSEPS 401(k) Plan Worksheet
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GSEPS New Hire Recap

• GSEPS Brochure
• 401(k) Opt-Out Form keep on file
• PeopleSoft set-up
• Pension Plan set up
• 401(k) Elect or Opt-Out
• No Opt-Out? Auto Enroll at 1 in your payroll
  system

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GSEPS Implementation Schedule

• Payroll System Modifications currently underway
• Go Live January 1
• Employer Training October through December
• ERS Member Newsletter Download from ERS website
• Opt-In Information Meetings Through December -
  statewide
• Forecast Calculator on ERS website
• Delivery of GSEPS Brochures and 401(k) Opt-Out
  Form - mid December (also on website)