Active Members Benefits, Forms and Services

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Active MembersBenefits, Forms and Services

• Public Safety Personnel Retirement System

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Todays Discussion

• Review all benefits and forms associated with
  Active Membership
• Membership forms
• Record Changes
• Contributions
• Service Purchases
• Transfers
• Refunds

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Membership Form P1

• All NEW employees must complete form
• New Employees
• Laterals (in state and out of state)
• Re-hires
• Membership date should reflect the New hire date
• Position is not the number of hours working, but
  the position title
• Part-time employees are not eligible to
  participate.

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Record ChangesChange of Beneficiary/Address
Name
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Contributions

• Just a reminder
• Part-time (working less than 40 hours)
• Position that is not a covered PSPRS position
• Seasonal Employee

Are not contributing members in PSPRS!
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Service vs. Credited Service

• Service A.R.S. 38-842 (26)
• Last period of continuous employment of an
  employee by the employers prior to the employees
  retirement
• This would include Industrial without
  contribution, LWOP, FMLA, STD or LTD
• Credited Service A.R.S. 38-842 (9)
• Contributions made in full for industrial leave
  and normal pay periods with full, regular
  contributions

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Covered Compensation

• Salary means
• Base wages.
• Shift differential regular payroll basis.
• Holiday pay regular payroll basis.
• Vacation/Sick leave USED.
• Contributions should NOT be made on
• Fringe benefits.
• Lump sum payoffs.

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Contributions during Industrial leave

• This is an ALL or NOTHING Situation
• Member completes form P19
• Remember, its a full contribution from the
  member or nothing at all
• Contributions to the system must be made through
  employers payroll department.

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Contributions During Military Service

• A.R.S. 38-858 governs military service
• Member must
• Be called to action, volunteer, or ordered by
  Presidential call up
• Be a member of any military establishment in AZ
• Be honorably separated and returns to same
  employer within 90 days
• Provides a DD214 to employer

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Contributions During Military Service

• If member satisfies requirements, then Employer
  must
• Make all employee and employer contributions from
  deployment date until separated from military
  service- up to 48 months
• Verify DD214 information

• Please Note
• If your employee is working for you part-time
  during their presidential call up, the employer
  must still contribute all contributions on behalf
  of the employee when they return to full-time
  status

DO NOT WITHHOLD CONTRIBUTIONS FROM THEIR PART
TIME PAY!
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USERRA What does that mean for our members?

• If member serves 60 months during presidential
  call up then
• Member can elect to pay their portion of
  contribution for the last 12 months
• If member chooses this option then the employer
  must
• Pay employer portion of contribution for the 5th
  year established by federal law
• Members contribution must be paid directly to
  employer and employer sends total contribution to
  the system

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Payment Of Contributions To The System

• Contributions must be made to PS within TEN
  working days after the payroll date.
• When submitting payment for adjustments
  (military, back contributions, etc.) please
  submit a breakdown of the following
• Members name
• Social Security number
• Pay period ending dates
• The employee amount paid/adjusted
• The employer amount paid/adjusted

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Service PurchasesApplication to calculate
severance refund repayment- P1B

• Members who terminated, withdrew their money and
  have come back to work with the SAME employer,
  WITHIN TWO YEARS and APPLY WITHIN 90 DAYS can
  purchase their time paying back the amount
  refunded plus 9 interest

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Service Purchases Application to Redeem Prior
Service Within the Same System P2

• Available to active member who would like to
  purchase previous time within the same system.
• Time can be purchased in any increments

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Service Purchases Application to Purchase Active
Military Time -18

• Purchase active military time prior to their
  membership with PSPRS
• Along with the application they will need to
  submit a copy of their DD214 and 256A (if they
  have one)

This can be purchased in any increments with
MAXIMUM purchase of 48 months
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Service Purchase Out of State Service Affidavit
- POSS

• Allows member to purchase previous time from out
  of state employers
• Statute specifically qualifies eligibility for
  this purchase if
• Member was a full-time firefighter or certified
  peace officer
• Contributions are not on account with their
  previous system
• Purchase can be made in any increments

This is a Purchase of time not a Transfer of time
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Service Purchases Redemption of time with a
PSPRS employer prior to joinder date - PSR

• Makes available the ability to purchase prior
  time with employer prior to employer joinder date
  with PSPRS, only if
• Member was employed as full-time certified peace
  officer or firefighter.
• Member is not eligible for future pension or
  service under previous system.

This purchase can be made in any increments
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Service Purchases How can member pay for this
service?

• Pay directly out of their pocket
• Transfer of funds from another qualified plan.
• The Federal Law allows members to transfer funds
  from a qualified plan to off set the cost of
  purchasing time. We will accept a
  trustee-to-trustee transfer from one or more of
  the following accounts
• Sec 401(a) Qualified Defined Benefit Plan
• Sec 401(a) Qualified Defined Contribution Plan
• Sec 403(a) Qualified Annuity Plan
• Sec 403(b) Tax Sheltered Annuity
• Sec 408(a) Traditional IRA
• Sec 408(b) Individual Retirement Annuity
• Sec 457 Governmental Plan

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One Quick Note

• When it comes to qualified fund transfer
• member will receive a calculation from us and
  they elect to use money from one or more of the
  sources previously mentioned, they must then take
  their calculation to the financial institution to
  have their money transferred to us

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Service Purchase Rumors

• We do not accept installment payments
• Payments through payroll deductions
• Increase the contribution percentage of the
  member to their purchase
• Can NOT Purchase air-time (a member must have
  time eligible to purchase)

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Transfer of Service redemption or transfer of
service credits between Arizona retirement
systems U2

• Allows member to either transfer time or redeem
  time that they previously had within another
  Arizona Retirement System
• Arizona State Retirement System (ASRS)
• Corrections Officer Retirement Plan (CORP)
• Elected Officials Retirement (EORP)
• City of Phoenix Employees Retirement (COPERS)
• Tucson Supplemental Retirement System (TSRS)

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Transfer of Service Application to transfer
service credits between PSPRS employers P1A

• Application is completed when
• Your hire an employee, who previously contributed
  to PSPRS with another employer
• Member terminates employment with you and you
  know they have accepted employment with another
  PSPRS employer

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Refunds Member Terminates, Now what?

• Personnel or HR should offer Form P6, Form U3 and
  the Special Tax Notice to terminated employee.
• Form P6, Form U3 and the Special Tax Notice are
  all on the website www.psprs.com
• As a last resort, members may contact us for the
  forms.

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Some Things to Remember regarding the P6

• Member completes Page 1
• Initial where appropriate (no Xs)
• Signature and date (required)
• Form Does Not need to be notarized, but Does need
  to be signed by a witness
• Deferred Pension option
• Member only initials this portion if they want to
  defer their retirement until age 62
• Or want to leave their monies on account until
  the system receives further notice from member

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Some Things to Remember regarding the P6

• You as the employer will complete two sections on
  page 2
• Employers Certification of Termination
• Employers Certification of Information
• Only if member had five or more years of credited
  service.

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Refunds Completing the U3

• If member is taking a refund of contributions,
  the U3 (Lump Sum Distribution Election Form) is
  REQUIRED

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Refunds Completing the U3

• Member completes Page 1 of form
• They need to elect how distribution will
  commence
• A Full/Refund to member (There are Tax
  implications)
• B Direct Transfer (roll over of taxable funds to
  qualified plan
• C Partial Transfer (a blend of option A and B)
• If Member Chooses option B or C
• Member must take Form U3 to the financial
  institution of their choice
• The Agreement of Depository Trustee (page 2) must
  be completed and signed by an authorized trustee
  to complete the Direct Rollover

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Refunds Completing the U3

• Taxable Funds are eligible for Direct Rollover to
  the following qualified plans
• 401(a) Qualified Defined Benefit Plan
• 401(a) Qualified Defined Contribution Plan
• 403(a) Qualified Annuity Plan
• 403(b) Tax Sheltered Annuity
• 408(a) Traditional Individual Retirement
  Account (IRA)
• 408(b) Individual Retirement Annuity
• 457 Governmental Plan (Deferred Comp)

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Refunds The Final Steps

• Once P6 and U3 are properly completed, mail
  documents to PSPRS
• If forms are received and not completed properly
  then
• They will be returned to member or employer for
  completion
• There will be a delay in the refunding of
  contributions

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Refunds The 20 days

• The 20 days begins when
• Form P6 and U3 are received by PSPRS-complete
• Final contribution has been received by PSPRS
• Termination is verified by the Employer

• The 20 days DOES NOT begin
• From the members termination date
• The day the member fills out the refund
  application

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PSPRS Active Members Staff

• LaDawn Toger -Active Member Team Leader
• Sherry Saltsman Member Svc. Team Lead
• Tony Jenkins Transfers/Buybacks
• Connie Vasquez Refunds
• Dorothy Miller Membership/beneficiary
• Cathy Gonzalez Member Services
• Active Fax [phone]

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QUESTIONS?