Agenda

1
Agenda

• Eligibility
• TRS
• PERS
• Scenarios
• Retiree Return to Work
• Forms
• Open Discussion

2
Eligibility
Eligibility
3
Membership Eligibility
Three steps
to successful eligibility management
4
Determination
5
Determination

• You are responsible for the initial
  determination of an employees eligibility for
  membership
• Retirement Status Form
• Position Eligibility Worksheet
• New Hire Pyramid

6
Eligibility
TRS
7
TRS Plan 1

• Member
• Person who has established membership and has not
  withdrawn their contributions
• Former Member
• Person who has established membership and has
  withdrawn their contributions

8
887551111
887-55-1111
9
441223333
441-22-3333
10
TRS Plan 1 Members

• Report all TRS Plan 1 members regardless of
  position on the TRS transmittal from the first
  day of employment

11
TRS Plan 1 Former Members
Hired into a faculty position

• A former member of TRS Plan 1 is treated as if
  they have never been a member of TRS
• If the individual is eligible for HERP coverage
  they must join HERP immediately
• Less than full-time contracts that are not
  eligible for HERP provide quarterly substitute
  report
• RCW 41.32.013

12
TRS Plan 1 Former Members
Hired into a non-teaching position

• Eligible Position
• Report in HERP if appropriate
• Or
• Report in PERS until TRS Plan 1 membership is
  reestablished (payback withdrawn TRS Plan 1
  member contributions)
• Ineligible Position
• Report in HERP if appropriate
• Do not report on transmittal until TRS Plan 1
  membership is reestablished

13
TRS Plans 2 and 3
A position is eligible if it normally requires
five or more months of at least 70 hours of
earnable compensation during September through
August of the following year

• Eligible Position
• Report in appropriate System/Plan
• Ineligible Position
• Provide a quarterly report if they are working in
  an ineligible position and not contributing to
  HERP
• RCW 41.32.013

14
Eligibility
PERS
15
PERS

• The initial determination of eligibility must be
  based on the position
• Job share
• Employees in an ineligible position cannot be
  members
• Employees working in more than one ineligible
  position may be eligible for membership
• Eligibility can also be determined by the person

16
PERS
A position is eligible if it normally requires at
least five months each year in which regular
compensation is earned for at least 70 hours per
month

• New Position
• Meets eligibility definition for two consecutive
  years
• Existing Position
• Meets eligibility definition during at least one
  year in any two year period

17
PERS
Exempt from Membership

• Independent Contractors
• WAC 415.02.110
• Contractor Questionnaire
• Current members of Higher Education Retirement
  Plans (HERP)
• Student and spouse of student
• WAC 415-108-520

18
PERS Options

• New Member Plan Choice
• Transfer Option
• Membership Chosen

19
New Member Plan Choice

• New to PERS on or after March 1, 2002
• Member has up to 90 days to make their plan
  choice between PERS Plan 2 and PERS Plan 3
• Member defaults to PERS Plan 3 at the end of 90
  days
• WSIB
• Rate option A, 5
• 90 Day Report

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21
New Member Plan Choice

• Report member in PERS Plan 2 on the first
  transmittal
• Unless member chooses a plan before payroll
  cutoff
• Begin date
• Choice date
• Submit plan choice record via the transmittal
  after the Member Information Form (MIF) is
  received
• Plan choice date (the date member signed the
  form)
• Plan choice code
• 2C
• 3C
• 3D

22
KELLY
535-11-2222
23
Transfer Option

• Established PERS Plan 2 membership prior to March
  1, 2002
• Option to transfer to PERS Plan 3 in January
• Report in PERS Plan 2
• Plan transfer code
• 3X

24
Membership Chosen

• Member chose PERS Plan 2
• Report member in PERS Plan 2
• May never transfer to PERS Plan 3

25
123-45-6789
CASEY
26
Membership Chosen

• Member chose PERS Plan 3

OR

• Member defaulted into PERS Plan 3
• Report member in PERS Plan 3
• 90 days to choose investment program and
  contribution rate
• Default
• WSIB
• Rate option A, 5
• Report only employer contributions until MIF is
  received or member defaults
• Member contributions from date of choice/default
  forward

27
544113232
JEREMY
544-11-3232
28
Plan 3 Lost Earnings

• If employer misses a deduction, deduct double on
  the next reporting period
• Potential for lost earnings
• Be consistent with application
• Employer or member can notify DRS

29
PERS Plans 1 and 2TRS Plan 2

• A member of PERS Plans 1, 2 or TRS Plan 2 who
  have withdrawn their contributions are treated as
  if they have never been a member of PERS or TRS
• If the individual is eligible for HERP coverage
  they must join HERP immediately

30
PERS and TRS Plans 3

• A member of Plan 3 who has withdrawn their
  contributions is still considered a member of
  PERS or TRS
• Plan 3 withdrawn members can still have rights to
  a Defined Benefit
• WAC 131-16-031
• If the individual is eligible for HERP coverage
  and working in an eligible position (PERS/TRS)
  give them a choice
• WAC 131-16-031
• Page 9

31
Documentation
32
Position Management

• Determine what positions you have
• Assign each position a unique identifier
• Numbering systems
• Track each position
• Determine the positions eligibility by reviewing
  the number of hours worked under each unique
  identifier

33
Documentation

• All determinations of position eligibility should
  be documented
• Numbering system
• Position Eligibility Worksheet
• Determinations must be kept and maintained in a
  separate file for 60 years
• Per established archival retention schedule
• Payroll register and timesheets

34
Periodic Review
35
Periodic Review
36
Eligibility
37
Eligibility
Retirees
38
Retirees
Definition

• A person receiving a lifetime, defined benefit

OR

• Lump sum benefit

39
Retirees
Accrual Date

• Accrual date is set when a member is eligible to
  retire

And

• Member must complete the following steps
• File an application with DRS
• Terminate employment with all public employers
• Sever all contractual agreements for future
  employment

40
313112222
313-11-2222
41
Retirees

• Most retirees are limited in the amount of hours
  they can work and still received their pension
  from DRS
• Employers are responsible for correct reporting
  of compensation and hours
• Retirement Status Form
• Verify status via MRV
• RCW 41.50.139

42
Retirees

• LEOFF Plan 2 Retirees may choose between two
  options
• Become an active member and temporarily suspend
  their LEOFF retirement benefit
• Remain retired and continue to receive their
  LEOFF retirement benefit

43
Retirees

• All retirees must be reported to DRS
• Report under Plan 0
• Report in system applicable to their current
  position
• Report appropriate begin and end dates
• Report appropriate type code
• Eligibility rules are the same for all positions

44
Retirees

• Contributing to HERP
• 97 for TRS
• 99 for PERS
• Need email to set flag if contributing to HERP
• 98 Eligible Position
• Compensation and hours required
• 99 Ineligible Position
• Compensation and hours are optional

45
Retirees

• Members cannot have an agreement to return to
  work prior to their retirement accrual date
• Most retirees must have at least a 30 day break
  in service from their accrual date
• Retirees benefits are suspended if they work
  over their annual limit
• DRS notifies both member and employer
• Benefits re-start upon separation or beginning of
  new calendar year

46
Limits
TRS Plan 1 retirees

• From July 22, 2007 forward can work up to 1,500
  hours per fiscal year without any reduction in
  benefit
• Must have at least a 45 day break in service
• Employer must document a justifiable need to hire
  the retiree pursuant to a writing policy
• Must be hired through the employers established
  process
• Employer keeps a record of the hiring process and
  decisions made for access by DRS when necessary

47
Limits
PERS Plan 1 retirees

• Prior to August 01, 2003 can work up to 1,500
  hours per calendar year without any reduction in
  benefit
• Must have at least a 30 day break in service
• Employer must document a justifiable need to hire
  the retiree pursuant to a writing policy
• From August 01, 2003 forward can work up to 867
  hours per calendar year without any reduction in
  benefit

48
Limits
TRS and PERS Plan 1 retirees have a lifetime
limit of 1,900

• Employer must document a justifiable need to hire
  the retiree pursuant to a written policy
• Must be hired through the employers established
  process with approval by your highest authority
• Employer must keep a record of the hiring process
  and decisions made for access by DRS when
  necessary

49
Limits
All other Retirees

• Can work up to 867 hours per calendar year
  without any reduction in benefit
• Must have at least a 30 day break in service

50
Retirees

• Calculations for benefit limits are based on the
  hours reported with type code 98
• Report B codes for months with no compensation
  and hours
• Employer contributions are due on retirees who
  exceed 867 hours
• Invoice will be sent the first of the following
  month back to the first hour of employment

51
Retirees

• Hours associated with the following types of
  compensation are counted against the annual limit
• Actual hours worked
• Vacation/sick leave used
• Paid Holiday
• Vacation and personal leave cash outs do not
  count against the annual limit

52
Retirees
Must have justifiable need, use the established
hiring process, and keep all records.
53
Eligibility
Scenarios
54
Scenario A
The Department of Health hires the following
person into a half-time eligible position in the
Licensing and Certification Section.
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Scenario A
Report system/plan?
PERS Plan 2
57
Scenario B
The Department of Revenue hires the following
person into an eligible position in the Property
Tax Department.
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555-11-9999
Revenue Dept of
555-11-9999
59
Scenario B
Report system/plan?
PERS Plan 3
60
Scenario C
The Department of Licensing hires the following
person into an eligible position for the
Information Services Department.
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565-55-7878
Licensing Dept of
565-55-7878
62
Scenario C
Report system/plan?
Optional
LEOFF Plan 2 retirees must choose between two
options

• Become a member of PERS and temporarily suspend
  their LEOFF retirement benefit
• Remain retired and continue to receive their
  LEOFF retirement
• Must complete the LEOFF Plan 2 Retiree
  Re-employment Form

63
Scenario D
DSHS hires the following person into an eligible
position in the Budget Department.
64
Scenarios
565-55-7878
565-55-7878
65
Scenario D
Report system/plan?
TRS Plan 1
66
Scenario E
The State Parks and Recreation Commission hires
the following person into an eligible position to
work as a Park Aide.
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Scenarios
536-56-5555
Parks Recreation Commission
5555
68
Scenario E
Report system/plan?
New Member Plan Choice
PERS Plan 2
69
Eligibility
Forms
70
Retirement Status

• Employers must elicit information from all new
  employees (RCW 41.50.139)
• Employer keeps this form

71
Member Information

• New to PERS
• Plan 2 transferring to Plan 3
• Plan 3 returning to eligible employment choosing
  a new rate
• Member signs and returns form to employer within
  90 days of begin date
• Employer mails original form to DRS only if
  Section 2 is required

72
Beneficiary Designation

• Used to document beneficiary information in case
  of death
• Separate 150,000 death benefit option

• Send form to DRS

73
Plan 3 Change of Investment Program

• Used to document members change of investment
  program
• Member signs and returns form to employer
• Employer keeps this form

74
LEOFF 2 Retiree Re-employment

• Used for LEOFF 2 RRTW in an eligible position
• Excludes LEOFF positions
• Member must choose between 2 options
• Member signs and returns form to employer
• Employer mails original to DRS

75
Notification of Death

• Used to notify DRS if a member, beneficiary or
  retiree has passed away
• Employer mails original form to DRS

76
Contacting DRS

• DRS Web Site
• http//www.drs.wa.gov
• E-mail
• drsemployer_at_drs.wa.gov
• Telephone
• Local 360-664-7200 (option 2)
• Toll free 1-800-547-6657 (option 6 then option 2)
• Fax
• 360-753-1090

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Thank You
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