Retirement

1. Retirement Retirement tips, State ORP and Deferred Comp updates

2. Retirement processing tips Return-to-work rules

3. Working retirees • Must be retired for at least 30 consecutive calendar days before returning to covered employment. • Employers must remit all contributions normally remitted for active members including: • Incidental Death Benefit; and • Insurance surcharge. • Working retirees do not receive additional service credit or interest on their accounts.

4. 30-day retirement requirement • For a retiree who returns to work sooner than 30 days after his date of retirement: • PEBA suspends the retiree’s benefits; • PEBA notifies the retiree in writing; and • PEBA works with the retiree and employer to ensure the employee meets the retirement requirement. • Elected officials are exempt.

5. $10,000 earnings limit • Service retirees can return to covered employment and earn up to $10,000 per year without affecting their benefit. • Benefits will be suspended for the remainder of calendar year for retirees who earn more than $10,000 in covered employment. • Benefits will begin again the next January. • Benefits will resume if PEBA is notified of termination from all covered employment.

6. Exemptions to the $10,000 earnings limit • Those who retired before January 2, 2013. • Those age 62 at date of retirement (SCRS). • Those age 57 at date of retirement (PORS). • Compensation from a public office filled by: • Appointment by the Governor and confirmed by Senate. • Appointment or election by the General Assembly. • Election by the qualified electors of the applicable jurisdiction.

7. Exemptions to the $10,000 earnings limit • Teaching in a critical academic or geographical needs area. The State Department of Education designates such areas. • State Department of Education Assurance Form for Meeting the Requirements to Employ Retired Individuals required. • Class 1 law enforcement officer who retired under PORS on or before December 31, 2017, and employed with public school district as a critical needs school resource officer. • Certification (Form 7214) required. • This exemption is effective July 1, 2019, and is contingent upon continued approval in each year’s state budget.

8. Exceeding the earnings limit • Monthly salary estimates from employers allow PEBA to project when a retiree may exceed the limit. • PEBA notifies employers in writing that benefits will be suspended. The letter requests correction if an error exists. • PEBA then notifies the retiree in writing that benefits will be suspended. The letter asks the retiree to contact his employer if an error exists. • This notice is intended to proactively help employers and retirees comply with the earnings limitation. • Please note that the application of the earnings limitation will be based upon the retiree’s actual earnings; it is not contingent upon these notice letters generated from monthly salary estimates.

9. Return-to-work hire dates • Submit accurate return-to-work dates immediately when hiring a retired member. • Use the Employed Retirees – Return to Work Entry in EES. • Include the date of hire and estimated monthly salary. • Comptroller General employers enter into SCEIS instead of EES. • PEBA actively monitors the 30-day retirement requirement and the earnings limit. • Delinquent return-to-work information can result in overpayments of retiree benefits. • Employers may be required to repay overpayments to PEBA.

10. Return-to-work information entry

11. Return-to-work information entry

12. Electronic Employer Services (EES) Resolving retirement employer reporting transaction errors

13. Electronic Employer Services (EES) • Secure portal available to employers participating in the Retirement Systems. • Authorized users may submit and access retirement information for members that are employed by the entity. • User access can vary depending on each user’s job function.

14. EES home screen

15. EES Employer Transaction Error List • Errors occur when PEBA is unable to post a member’s quarterly contribution detail record as reported by the employer. • The EES Employer Transaction Error List includes a list of every member record that is in an error status. • The Errors and Resolutions column includes the error message, along with instructions on how to resolve and correct. • The Error List is initially sorted with oldest errors at top, but you can customize by re-sorting the column headers.

17. Employer transaction errors • Some common errors include: • Missing enrollments. • Missing return-to-work information. • Last name discrepancies. • Contributions not calculated using correct rate. • Changes in contract lengths. • Messages include links to relevant tasks for both enrollment and return to work.

18. Final payroll certification • When a member retires, the employer receives tasks in EES requiring them to certify retirement date and final payroll information. • When certifying final payroll information for members of SCRS, be sure to check Yes if overtime pay is employer mandated.

19. Defined Contribution Programs update

20. State Optional Retirement Program (State ORP) • Enrollment process. • Fiduciary responsibilities. • Participant name and address updates. • Security. • Service provider contact information. • Request for Proposal (RFP) timeline.

21. South Carolina Deferred Compensation Program (Deferred Comp) • RFP result. • Enrollment process. • Fiduciary responsibilities. • Security. • Participant name and address updates. • Termination dates. • Retirement plan advisors.

22. State Optional Retirement Program

23. Enrollment process • With provider: • PEBA shares enrollment information with selected service provider. • Service provider reaches out to participant with directions on how to complete his enrollment. • Forms or online process to select investment options and designate beneficiaries for State ORP account balance. • Process is the same regardless of employer type. • With PEBA: • Employer begins process through Electronic Employer Services (EES). • Participant elects State ORP then selects service provider. • Employer approves selection. • Participant completes Form 1106 for PEBA’s incidental death benefit. • Process is different for employers under the Comptroller General’s payroll.

24. Fiduciary responsibilities • Remittance requirements: • Made in accordance with the guidelines established by the Internal Revenue Service for payroll tax remittance. S.C. Code Ann. § 9-20-50. • Distributions: • Separation from all covered employment or age 59½. • Ensure participant who is not 59½ is separated from all covered employment. • Required minimum distributions at age 70½. • Not required if participant is actively employed on last day of calendar year. • Employer contact information: • Keep current with service providers. • Provider service center access: • Contact service providers for required forms. • Have authorizing contact on file with PEBA sign the form approving access. • Timely delete access for those who no longer need it.

25. Participant name and address updates • With service providers: • Varies by provider. • Active – generally provided by employer. • Terminated – can update directly with service provider. • Contact providers for specific instructions. • With PEBA: • Member Access. • Form 1100.

26. Security • For timely notification regarding account activity, participants should: • Attach phone numbers to State ORP account and keep current. • Attach email addresses to State ORP account and keep current. • Update mailing address with State ORP provider as soon as possible.

27. Service provider contact information • Find current contact information at http://www.peba.sc.gov/assets/sorpvendorcontacts.pdf. • Always refer to current list when reaching out to service providers.

28. RFP timeline • Required by statute to contract with four third-party administrators (S.C. Code Ann. § 9-20-30). • Current contract ends June 30, 2020. • Updates will be provided through PEBA Update.

29. SC Deferred Compensation Program

30. RFP result • Empower Retirement. • New contract begins January 1, 2020.

31. Enrollment process • Enroll directly with service provider. • Application available at www.southcarolinadcp.com. • Under About Deferred Comp – Enroll now. • Employer will be notified via the Plan Service Center (PSC) of deductions for its employees. • 401(k) plan and loan – every Friday. • 457 plan – First of each month. • Electronic enrollment process being developed.

32. Enrollment process • If an employee is hired and is coming from another participating employer, please inquire as to employee’s level of participation in Deferred Comp and whether employee wants to continue participating. • Complete Participant Enrollment/Employer Transfer form. • Select all plans in which employee participates. • Select Employer Transfer box, enter employer name and payroll center number. • If no other changes to contributions, investments, or beneficiaries, sign final page and fax to Empower.

33. Fiduciary responsibilities • Remittance requirements: • As soon as administratively practicable after the contributions have been withheld but in no event later than 15 days after the time such amounts would have otherwise been payable to the participant as salary. • Distributions: • 457 plan – separation from all covered employment. • 401(k) plan – age 59½ or separation from all covered employment. • Required minimum distributions at age 70½. • Not required if participant is actively employed on last day of calendar year. • Employer contact information: • Keep current with service provider. • Provider service center access: • Contact service provider for required form. • Timely delete access for those who no longer need it.

34. Fiduciary responsibilities • Employer reference guide available by selecting the Employers link at www.southcarolinadcp.com.

35. Security • For timely notification regarding account activity, participants should: • Attach phone numbers to Deferred Comp account and keep current. • Attach email addresses to Deferred Comp account and keep current. • Please make sure you are providing the work email address as participants are unable to update that information while active. • Update mailing address with Deferred Comp provider as soon as possible.

36. Participant name and address updates • Active employees: • Employer updates via remittance file to service provider or update in the PSC. • Terminated employees: • Participant can update via account online. • Personal Information Change Request form may be submitted. • Request form through voice response system at 877.457.6263. • Employer has access to form through the PSC.

37. Termination dates • Promptly report termination dates via the PSC. • Distributions – Retired or terminated participants who complete a termination from employment distribution request will need to have a termination date added to their account in order to process the request regardless of age. • Loans – Participants with loans are mailed information pertaining to how to continue to make payments once terminated, but the provider will not know to mail the information unless the termination date is keyed on the system by the employer. • RMDs – RMD is not required if someone is actively working on the last day of the calendar year.

38. Retirement plan advisors • Territory map recently updated. • Fully licensed to provide retirement plan advice. • No additional charge for participants to meet one on one with advisors. • Current advisor map available under Program resources at www.southcarolinadcp.com.