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/Record Changes
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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
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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 eligible for membership in PSPRS!
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Service vs. Credited Service

• Service A.R.S. 38-842 (38)
• 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 (11)
• Contributions made in full for industrial leave
  and normal pay periods with full, regular
  contributions

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Covered Compensation

• Compensation means
• Base wages.
• Shift differential pay 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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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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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.
• If member elects to contribute during industrial
  leave , the employer is required to make employer
  contributions A.R.S.38-843(B)

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Form P19
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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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Military Service PSPRS/USERRA

• The Arizona State Legislature has enacted
  legislation giving members who serve in the
  military in active duty due to a presidential
  call-up an extra benefit. The employer is
  required to pay both the employer and member
  contributions for the first 48 months of active
  duty due to a presidential call-up.
• A member with more than 48 months of military
  service may elect to make up missed contributions
  for 12 additional months of service. The member
  must pay the 12 months of contributions. Once the
  member contributions have been paid, the employer
  must make the employer contributions.

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Military Service - USERRA

• Members who serve in the military, including
  active and inactive duty, may make up the
  contributions missed while performing military
  service.
• The member must be honorably separated, provide a
  copy of his/her discharge papers, and return to
  work within the timeframes provided by USERRA,
  which depend on the length of service.
• The member has three times the length of service,
  not to exceed 60 months, to make up
  contributions. The member may not be charged
  interest on the payments. Once the employee makes
  up missed contributions, the employer must must
  make up the missed employer contributions.

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Military Service - USERRA

• PSPRS does not have a mechanism in place to
  accept monthly payments of additional
  contributions. Most employers make a lump sum
  payment of both the employer and member
  contributions and enter into an agreement with
  the member to repay the total amount.
• Contributions are to be calculated at the rate of
  pay the member would have received but for the
  military service.

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Military Service - USERRA

• If a member returns from military service with a
  service-related injury, the employer must make
  reasonable accommodations to return the member to
  a position of comparable pay and benefits.
• If the employer cannot accommodate a disabled
  member to maintain a position eligible for PSPRS,
  the employer may place the member in a non
  designated position of comparable pay, but the
  member must be transferred to ASRS.

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SERVICE PURCHASE
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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 Affidavit to redeem prior
contract service P2A

• Employers may choose to pick up the cost of the
  contracted time. This would require an amendment
  to the joinder agreement.
• If the employer does not choose to do this, the
  member may purchase their time

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Service Purchases Affidavit to redeem prior
contract service P2A - continued

• A member may only use the two qualified
  governmental plans listed below to purchase
  service
• 457 Deferred Compensation Plan
• 403(B) Tax Sheltered Annuity Plan
• or
• A member may use their money to purchase
  time.This payment method is subject to IRS
  limitations.

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Form P2A
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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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Form 18
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Service Purchase Out of State Service Affidavit
- POSS

• Allows member to purchase previous time from out
  of state public 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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Form POSS
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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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Form PSR
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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
• Member needs to contact their financial
  institution.

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Service Purchase Facts

• We do not accept
• Installment payments
• Payments through payroll deductions
• Increase in members contribution
• percentage
• A member cannot purchase air-time. A member
  must have eligible time in order to purchase
  service.

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TRANSFERS
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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
  public 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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Form U2
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Transfer Facts

• Submitting a U2 application does not
  automatically transfer a members time.
• If member accepts a reduced transfer, the member
  extinguishes all rights to the remainder of the
  time. This time is not eligible to be purchased
  in the future.

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

• Application is completed when
• You 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
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Refunds Member Terminates, Now what?

• Members may obtain the Form P6, Form U3 and the
  Special Tax Notice from their personnel or HR.
• OR
• Members may contact the System for the forms or
  visit our website at www.psprs.com

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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 Retirement Allowance
• 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 occur
• 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?