From Hire to Retire

1. Arkansas Public Employees Retirement System presents From Hire to Retire A Complete How-To Guide of Employer Responsibilities

2. Introduction Why Are We Here?

3. Welcome To APERS’Employer Training Topics • New Hires • Eligibility /Contributory & Non Contributory • Forms • Ongoing Responsibilities • Day to Day • “The 3 R’s”, • Remit, Report, Reconcile. • Forms • Other • Retirement • Termination / retirement issues • Forms

4. Note: Throughout this presentation you will see this symbol “►”. By clicking on the “►”, you will see additional slides on that topic. These additional subtopics are: • Completing the MDF • The Remittance Form • Reporting Earnings and Service • Manual Reconciliation form • Electronic Reconciliation form These subtopics can be found on your CD and can be viewed as individual PowerPoint presentations.

5. New Hires They’re Hired – Now What?

6. Determine Eligibility Full-Time or Part-Time? All employees hired with the intent of working at least 80 hours per month and 90 consecutive calendar days should be enrolled in APERS. This includes part-time, temporary and seasonal employees.

7. Determine Eligibility • Earnings Requirement The employee’s earnings must also meet Federal minimum wage guidelines.

8. Determine Eligibility • Exclusions Employees who are current members of or eligible for membership in another public retirement plan, or are currently receiving a benefit from APERS are NOT eligible for enrollment.

9. Concurrent Employment • Is your employee also working for another APERS-participating employer? Be sure to ask all new employees if they are currently employed anywhere else before determining whether they meet the eligibility requirements. Contact the APERS Call Center if you are unsure whether the second employer is covered by APERS retirement.

10. Elected Officials of First Class Cities Act 1281 (Effective July 16, 2003) requires that newly elected Mayors and City Clerks of a first class city who are serving in a municipality that participates in APERS shall become participating employees in APERS unless they opt to participate in the local retirement plan. The officials have 90 days after first assuming office to provide written notice that they opt to participate in the local retirement plan. APERS will refund any matching payments or contributions once the official has opted out of APERS.

11. Contributory or Non-Contributory? • Employees New to An APERS Employer Employees hired after July 1, 2005 who have never worked for an APERS-participating employer or are returning to work more than six (6) months after last being reported to APERS by an APERS-participating employer MUST be enrolled as contributory members.

12. Contributory or Non-Contributory? • Employees Returning to Work from A Previous APERS Employer Employees who terminated from an APERS-participating employer within the last six (6) months (and were non-contributory when they left) may choose to remain non-contributory or may decide to change to contributory status. All employees returning to an APERS-covered employer within the six month period must complete a Return to Work for an APERS-Covered Employer Form and submit it with the MDF.

13. New Hire Forms • Membership Data Form • Designation of Beneficiary Form • Return to Covered Employment Form There is no waiting period for enrollment into APERS. If an employee meets the eligibility requirements, s/he should be enrolled on/as of the first day of work.

14. New Hire Forms Membership Data Form ► NOTE: The new member will receive a Member Handbook mailed directly from APERS once the completed Membership Data Form has been received.

15. New Hire Forms Designation of Beneficiary • All Contributory Employees Must Complete • Form Must Be Notarized

16. New Hire Forms Only non-contributory employees who are returning within six (6) months of terminating from another APERS employer should complete this form. Return to Covered Employment Choose Contrib or Non-contrib Plan The employer will complete the bottom portion of the form and submit it to APERS with the Membership Data Form.

17. Reporting The Three “Rs” – Remit/Report/Reconcile

18. REMITTING EMPLOYER & EMPLOYEE CONTRIBUTIONS

19. Remittance of Employer Matching & Employee Contributions Employer Rate – 11.01% Employer Rates are determined each fall based on the most recent actuarial valuation and are set by the APERS Board of Trustees.

20. Remittance of Employer Matching & Employee Contributions • Employee Rate – 5.00% Employee contributions are deducted “pre-tax”, meaning that the contributions are NOT included when the employer calculates federal and state income taxes on gross pay. Social Security and Medicare taxes should be calculated on the full gross pay of the employee.

21. Remittance of Employer Matching & Employee Contributions • Payment Due Dates/Info Payments are due to APERS by the 10th calendar day after the employer’s payroll processing date*. *Payroll processing date is when your payroll has been calculated and is ready for checks to be issued – NOT when your employees are paid.

22. Remittance of Employer Matching & Employee Contributions • Payroll Due Dates/Info Remittances postmarked on or before the 9th* calendar day will not be considered delinquent regardless of when they are received. *If the 9th falls on a weekend or a federal holiday, you have until the next business day to postmark your remittance.

23. Remittance of Employer Matching & Employee Contributions • Completing The Remittance Form ►

24. Remittance of Employer Matching & Employee Contributions • Submit A Separate Remittance Form for Each Payroll Processing Date • Reconcile Your Payment using the Reconciliation Section • Sign the Form

25. REPORTING EMPLOYEE EARNINGS & SERVICE

26. Reporting Earnings & Service ►

27. RECONCILING THE MONTHLY REPORT WITH REMITTANCES

28. Monthly Report Reconciliation • Excel Spreadsheet Form • Manual Form ► • Excel Form ► A step-by-step guide for the Electronic Spreadsheet can be found on the APERS website at WWW.APERS.ORGor in the Employer Guide.

29. Delinquent Service I Messed Up – Now What?

30. Delinquent Service • What Is Delinquent Service? • Completing the Delinquent Service Forms • Payment of Delinquent Service – Employer and Employee

31. Delinquent Service • What Is Delinquent Service? Delinquent Service occurs when an eligible employee is not enrolled/reported when hired. 8% interest is calculated on the amount of employer matching that should have been paid from the date it was originally due. It is important to note that since all new employees are contributory after 7/1/05, the employee will also owe the delinquent contributions in order for the service to be established.

32. Delinquent Service • Completing the Delinquent Service Forms Forms are available at http://www.apers.org, on the CD you received at this training session or in the Employer Guide. You may also contact the Member Records Unit staff to assist you in completing the forms.

33. Delinquent Service Form Earnings should be listed by fiscal year (July through June) with the appropriate service credit for each month. Member Records staff will review the forms and will send a letter specifying the amount due to establish the service.

34. Delinquent Service • Payment of Delinquent Service Remit amounts for delinquent service to the attention of Member Records ( not with regular payroll remittances). Be sure to include copies of the Delinquent Service Forms. Delinquent employee contributions should be remitted by the employer. It is the employer’s decision as to whether the employee must reimburse the employer for the contributions. In the letter to the employer, Member Records will denote the date that payments are due to avoid additional interest.

35. Non-Salary Earnings What to Report/What Not to Report

36. Lump Sum Payments • Vacation Pay When Terminating • Bonuses Not Part of Base Pay • Overtime Pay (NOT PAID DURING THE PAY PERIOD IN WHICH IT WAS EARNED) One-time payments to employees are not eligible to be included in wages reported for retirement service credit.

37. Retroactive Wage Increases • Completing the Retroactive Wage Form • Payment of Matching for Retroactive Wages When a retroactive wage increase is given to your employees, you will need to complete the Retroactive Wage Form to indicate which month the wages would have been earned and reported to APERS.

38. Retroactive Wage Increases Completing the Retroactive Wage Form Retroactive wages must be completed on a month by month basis for each fiscal year involved. A form must be completed for each employee who received the retroactive wage increase.

39. Retroactive Wage Increases Payment of Matching and Contributions for Retroactive Wage Increases • Remit amounts for retroactive wage increases to the attention of Member Records ( Not with regular payroll remittances). • Be sure to include copies of the Retroactive Wage Increase Form. • Employee contributions due for retroactive wage increases should be remitted by the employer. • It is the employer’s decision as to whether the employee must reimburse the employer for the contributions.

40. Wage Settlements Completing the Wage Settlement Form

41. Wage Settlements Completing the Wage Settlement Form • Wage settlements are court-ordered payments made to employees. • Wage settlements must be completed on a month by month basis for each fiscal year involved. • A copy of the court order must be submitted with the Wage Settlement Form.

42. Wage Settlements Payment of Matching and Contributions for Wage Settlements • Remit amounts for retroactive wage increases to the attention of Member Records. (Do not send co-mingled with regular payroll remittances). • Be sure to include a copy of the Wage Settlement Form. • Employee contributions due for wage settlements should be remitted by the employer. • It is the employer’s decision as to whether the employee must reimburse the employer for the contributions.

43. Military Service Credit Employees Returning from Active Duty Deployment The Uniformed Services Employment & Reemployment Rights Act (USERRA) provides that an employee returning to work from active duty within the prescribed guidelines of the law is entitled to retirement service credit for the time they were deployed. Employers should obtain a copy of the DD - 214 form and submit it to the Member Services Section of APERS for processing.

44. Ongoing Employer Responsibilities Day to Day Tasks

45. Communication • Distribute Informational Materials • Notify Employees of Scheduled APERS Seminars • Contact Us If You Have Questions!

46. Ch-Ch-Ch-Changes • Change of Name • Change of Address • Change of Beneficiary • Employer Contact Changes • Employer Address/Phone/Email If an employee notifies your payroll office of a name or address change, please have them complete an APERS change of name or address form so our records will be correct.

47. Terminations/Retirements Going…Going…Gone!

48. Termination of an Employee • Indicate the termination by placing a “T” in the appropriate column on the Earnings & Service Report. • If the employee was contributory and wishes to have his/her contributions refunded, both the employee and employer must complete the Termination of Employment Refund Request Form. • The refund request cannot be processed until the report month when the employee was last reported has updated.

49. Termination of an Employee • Completing the Termination of Employment Refund Request Form The employee completes the top portion of the form and has it notarized. The employer completes the bottom box on the form, indicating when employment was terminated and the last month wages will be reported to APERS.

50. Deferred Retirement Option Plan (DROP) • Completing the DROP Participant Earnings Form • Removing the DROP Participant from the Earnings & Service Report & Cease Payment of Matching and Contributions • DROP Participant Employment Confirmation Report • Retirement from DROP