1 / 70

Retirement Plans/Issues April 25, 2014

Learn about retirement systems, contributions, qualifications, reporting, compensation, service credit, furlough implications, and more.

jasonhart
Télécharger la présentation

Retirement Plans/Issues April 25, 2014

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Retirement Plans/IssuesApril 25, 2014

  2. Agenda • Which Retirement System Are You? • Defined Benefit vs Defined Contribution • STRS • Contributions • Qualifications • Election Process • Reporting to STRS • Compensation • Creditable/Non Creditable

  3. Agenda • Penalties • Service Credit • Furlough Implications • Retirees • PERS • Contribution • Qualifications • Exclusions

  4. Agenda • Compensation • Special Compensation • Non-Reportable • Overtime • Service Credit • Furlough Implications • Election Process • Retirees • OASDI/Medicare Qualification • Questions

  5. Agenda • Next “Concept” Classes • Beginning Fall of 2014 • Salary Computation • Payroll Deductions/Withholdings • Paying Employees • Employee Leaves/Benefits • Retirement Systems • Open Labs after Each Concept Class

  6. Which Retirement System? • Based on Position not the Person • STRS: • Requires Credential, Permit or Certificate • Teachers, Administrators, Nurses, Psychologist • PERS: • Non-Credential, Meets PERS Qualification • Bus Drivers, Office Staff, Instructional Aides • Director of Human Resources, Chief Financial Officer • See Circular in Concepts Docs for Examples

  7. Which Retirement System? • Alternate Retirement/Social Security • Does Not Meet STRS or PERS Requirements • Part Time Employees - Less Than 20 Hours • Dual Retirement • Member in One System, Non-member in the Other, or Member in both • Working in both Classified and Certificate must have 2 Escape retirement tabs • Special Requirements

  8. Defined Benefit vs Defined Contribution • Defined Benefits Plans: • STRS/PERS • Promised Benefit Based on the Following Factors: • Age • Years of Service • Highest Final Compensation Pay

  9. Defined Benefit vs Defined Contribution • Defined Contribution Plans: • 457B/403B • Employee Contributions and Interest • Employer Can Participate

  10. STRS - Contributions • California State Teachers Retirement System (STRS) • Common name CalSTRS or STRS • Employee Contributions Currently 8% • Requires Legislation to Change • Employer Contribution Currently 8.25% • Reduced Workload Currently 10.276% for Employer

  11. STRS - Qualifications (See Retirement Qualification Rules) • Full Time • Immediately with Full Time 100% Contract • Part-time • 50% - 99% • Month following or • STRS Permissive Election (Form ES 350) from day one - Election can be made at anytime

  12. STRS Retirement Qualification Rules

  13. STRS - Qualifications • Substitute - Long Term/Daily/Hourly • 100 Days/600 Hours • With a Single District • 1st of the Following Month • During Same FY • Escape Report Retire01

  14. STRS - Qualifications • Less Than 50% of Contract/Daily/Hourly • After 60 Hours/10 Days • 1st of Following Month, unless the following pay period is in the new FY • With a Single District • Escape Report Retire02 • Funds on Deposit From Previous STRS Employment • Compulsory Membership Regardless of the Type of Employment Less Than Half Time

  15. STRS - Election • CalSTRS Audits Election Procedures • Permissive Election • Form ES 350 for Election • Form is Irrevocable • All Future Certificated Work is STRS • No Earlier than 1st Day of Pay Period in which Form is Signed • Forward Form to County Office • New – Need Employee 99 (Used to be NOPA)

  16. STRS - Election (See Join CalSTRS? Join CalPERS?) • CalSTRS Member in PERS Qualifying Classified Position • 60 Days to Elect to Stay in STRS • New ES-372 Form for Election • CalPERS Member in STRS Qualifying Certificated Position • 60 Days to Elect to Stay in PERS • New ES-372 Form for Election

  17. STRS - Election • Required to Ensure Employees have been Given the Election Form • Recommended that Districts Retain Written Acknowledgement(ES-373): • Employees Advised Concerning Form • Employees Given Form-372 • Forward Form-372 to County Office for Review (See Various Certificated Retirement Scenarios)

  18. STRS - Reporting • Issues: • Assignments Coding • Are They Reporting Correctly • Daily or Hourly • Special Compensation • Pension Spiking • Enhancing Member’s Benefits • Watch Contract Language • Requires Backup to County Offices

  19. STRS - Reporting • For “New” Members • Only Creditable Special Compensation is Longevity (See “T -chart”) • Reported with Code “72” • SEW • Secure Employer Web Site (SEW) • To Check Retirement Status: • https://sew.calstrs.com/CalSTRSSewWebUI/ Registration/Pages/Register.aspx

  20. STRS – Compensation (See CalSTRS Directive 2014-01) • Creditable: Ed Code 22119.5, 22119.2 and 22119.3 (PEPRA has been added) • Contributions on Service in Excess of One Year: • Creditable to the Defined Benefit Supplemental (DBS) Program • Not Used in the Calculation for Final Compensation Purposes

  21. CalSTRS Directive 2014-01 p.1 (See Handout)

  22. STRS – Compensation (See Employers’ Creditable Compensation Guide for existing members) • STRS Creditable Compensation Guide • Lists What Types of Compensation • To Creditable Service • To Defined Benefit Program (DBS)

  23. STRS – Compensation • Non Creditable: • Position is Not Eligible for State Apportionment • Position Does Not Require Credential, Certificate or Permit • Position Does Not Meet Community College Standards • Walk On Coaches are an example • Walk On vs Contract (does not have a STRS position with the Disrtict)

  24. STRS – Compensation • Compensation Cap for CalSTRS 2% at 62-Employee Portion Only • Cap on Compensation is Equal to 120% of the 2013 Social Security Wage Base • Will be Adjusted Annually Based on Changes to the Consumer Price Index for All Urban Consumers • Beginning July 1, 2013, the Compensation Cap for CalSTRS 2% at 62 is $136,440

  25. STRS – Service Credit STRS Service Credit Calculation: Pay CodeService Credit Formula 0 Earnings divided by Pay Rate 1 Earnings divided by Pay Rate divided by 12 2 Earnings divided by Pay Rate divided by 11 3 Earnings divided by Pay Rate divided by 10 Examples: Pay Rate Cd Earnings Service Credit 32,445.84 0 99.68 0.0030 *2,187.50 3 1,093.75 0.0500 *1,093.75/2,187.50 = .5 then divided by 10 = .0500

  26. STRS – Service Credit • Certificated Mandatory Furlough • Preserve Pay Rate • Reduces Service Credit • Preserve Service Credit • Change Calendars • Change Salary Schedules • Do Not Choose as Final Compensation Year • For K-12, Reduction Cannot Result in Less than: • 175 Days for Teachers • 190 Days for Program Managers, Principals, Administrators

  27. STRS – Retirees • CalSTRS Retirees can Work: • Earnings Limitations • FY13/14 = $39,903 • FY14/15 = $40,173 • After January 1, 2013, must wait 180 days before returning to work with a CalSTRSemployer • Will reduce their retirement benefit dollar for dollar by an amount equal to their earnings • Can Work as Classified Instructional Aide Only (Ed Code 45134) • Watch Payroll Reporting

  28. STRS – Retirees • Unused and Excess Sick Leave At Retirement • Basic Sick Leave • One Day’s Paid Leave of Absence per Pay Period • Excess Sick Leave • Number of Days in Excess of Basic Sick Leave • Employer Pays Present Value for Excess Sick Leave • Service Credit: • (Basic Days + Excess Days) /Contract Base Days • Employers Required to Report Basic & Excess Separately at Retirement (See Express Benefit Form SR0554E)

  29. PERS - Contributions • California Public Employees’ Retirement System (CalPERS) • Classic Member Currently 7% • New Members Currently 6% • Employers Contribution Currently 11.442% • Changes every fiscal year base on Actuary Assessment • PERS rate is an employer pool rate

  30. PERS – Qualifications • Membership Qualifications: • Permanent Full-Time (40 hours per week) • Part-Time Averaging at Least 20Hrs/Wk • for at least one year • Full-Time Temp Assignment in Excess of 6 Months • Currently a Member

  31. PERS – Qualifications • Member Reciprocal Self-Certification Form (PERS-CASD-801) • Form is for employers to identify if new employees are classic members due to reciprocity • Employers need to properly identify status of members at the time of hire (See Circular Letter 200-063-12 in Concepts Docs)

  32. PERS - Qualifications • Temporary, Seasonal, On Call, Emergency, Substitute or Irregular Basis: • Qualifies When Worked 1000 Hrs or 125 Days in Fiscal Year • OT Hrs. ARE Included for Qualifying Purposes • Escape Report Retire09

  33. PERS - Exclusions • Membership Exclusions: (Notice of Exclusion - AESD-139) • Independent Contractors • Elected or Appointed Officers (effect July 1, 1994) • Students employed by a school district they attend in a position established for students only

  34. PERS Retirement Verification

  35. PERS–Enrollment/Change Form • New Procedure • Log into PERS • Verify the employees PERS status • Verify employees enrollment level • Classic or New • Print a snap shot of PERS record in PERS • Log into Escape Employee Management • Go to Retirement tab (based on PERS info) • Setup employee’s retirement status • Setup employee’s retirement level

  36. PERS–Enrollment/Change Form • New Procedure • Forward to Maria in Business Services • Required Prior to First Payroll • PERS snap shot of employees PERS status/level • Form example in Concepts – Retirement documentation • Member Self - Certification Form • Form example in Concepts - Retirement documentation • PERS Enrollment/Change Form • Form example in Concepts - Retirement documentation

  37. PERS - Compensation • Compensation: • Pay Rate – Member’s Normal Rate of Pay or Base Pay • Report as Earned According to Job Classification • Must be Reflected in Pay Schedule or Bargaining Unit Agreement • PERS Members Can Be Paid on Monthly Basis, Hourly Basis or Daily Basis

  38. PERS - Compensation • CalPERS Compensation Cap for New Members (Employee Portion Only) • Members Participating in Social Security • Compensation Capped at the Social Security Wage Base • For 2014 the Compensation Cap is $260,000 • Members Not Participating in Social Security • Compensation Capped at 120% of the Social Security Wage Base • For 2014 the Compensation Cap is $138,077

  39. PERS - Compensation • CalPERS Compensation Cap for Classic Members (Employee Portion Only) • For 2014 the Compensation Cap is $126,000 • CalPERS Circular Letter 200-007-14 • Copy provided in Concepts – Retirement Documentation

More Related