Presentation to : GASBO Attendees Presented by : Bill Tierney, Employer Services Manager
ERS/PSERS RETIREMENT PLAN OVERVIEW PRESENTER: FLAVIA PEYNADO GEORGIA ASSOCIATION OF SCHOOL BUSINESS...
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Transcript of ERS/PSERS RETIREMENT PLAN OVERVIEW PRESENTER: FLAVIA PEYNADO GEORGIA ASSOCIATION OF SCHOOL BUSINESS...
ERS/PSERS RETIREMENT PLAN OVERVIEW
PRESENTER: FLAVIA PEYNADO
GEORGIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS(GASBO)
AUGUSTA GA
Employee’s Retirement System of Georgia (ERSGA)November 5, 2015
AGENDA
PSERS Membership & Eligibility Enrollment Contributions Creditable Service Service Retirement Retirement Application Refunds Returning to Public School Employment Frequently Asked Questions PSERS Membership Statements
ERS Membership & Eligibility Enrollment Contributions Earnable Compensation Retirement Application Forfeited Leave Returning to Employment after
Retirement
PUBLIC SCHOOL EMPLOYEES RETIREMENT
PLAN OVERVIEW
MEMBERSHIP (PSERS)
Originated: January 1970
Public Schools Employees Retirement System (PSERS) is a supplemental retirement plan for public schools employees who are not covered under the Teachers’ Retirement System of Georgia (TRS).
ELIGIBILITY (PSERS)
Membership Eligibility
Eligible are :
Public School Employee Not covered by TRS Full-time or part-time position On Monthly Payroll Performs regular services during the month
In-eligible are : Teachers or any school personnel Substitute Employees (< 60% of time) Fulltime Supervisors or Managers
ENROLLMENT (PSERS)
The Enrollment ProcessNo Membership ApplicationsFile Transfer Protocol (FTP) or Manual Enrollment
Valid SSNFull Legal NameDOBGenderValid AddressValid Contribution CodeValid Plan Eligibility Date
CONTRIBUTIONS (PSERS)
CONTRIBUTIONS (PSERS)
(See PSERS Handbook pg. 6)
PLAN CONTRIBUTION GROUPS AND RATES
Months: September – May ($36 or $90 per year) Prior to July 1, 2012 (PSRS-$4)
On or after July 1, 2012 (PXRS-$10)
Contributions are an after tax deduction
CONTRIBUTIONS (PSERS)
PSERS Deductions
What determines when a PSERS employee’s first deduction or last deduction is made?
If I have a lagged payroll how should deductions be handled?
If a PSERS employee works less than a ½ month am I required to send contribution for that month?
If on semi-monthly payroll, should $2 (PS) or $5 (PX)deduction be made in the 1st and 2nd pay period?
CREDITABLE SERVICE
Service Accrual September to May = 1 year of creditable service
Earning Creditable Service Prior Service (July 1, 1945 - June 30, 1970)
Credit For Service While A Member of the Teachers Retirement System Of Georgia
Job Related Temporary Disability / Leave Without Pay
Refund Buyback
Military Service (“USERRA”)
SERVICE RETIREMENT
Normal Retirement As early as the first day of the month on or after your 65 birthday With at least 10 years of Creditable Service. Attainment of age 65 and ten years of Creditable Service.
Early Retirement As early as the first day of the month on or after your 60th birthday, With at least 10 years of Creditable Service Normal Retirement benefit less 6% per year < age 65.
Terminated Vested Retirement Terminate employment with 10 years of service but prior to age 60 Do not receive a refund of contributions and interest Apply for retirement at age 60 or 65
RETIREMENT APPLICATION PROCESS
PSERS retirement applications are available online at
www.ers.ga.gov. Applications must be received at ERSGA
Applications due: Minimum 30 days prior, not earlier than 90
days
Effective retirement date -1st day of the month.
Retirement benefit is paid on the last business day of each
month.
Benefits can be mailed or direct deposited
REFUNDS
Any terminated employee is eligible to
receive a refund of contributions plus interest. Membership status must be TERMINATED to be eligible for refund Members can apply online by logging on to their online member
account via “Account Access” at www.ers.ga.gov Refund process may take up to 8 weeks
RETURNING TO EMPLOYMENT
BEFORE RETIREMENT
Verify plan eligibility (PSRS or PXRS)
Use the Check Plan Eligibility Module on the Employer Website or
Contact your PSERS employer representative
RETURNING TO EMPLOYMENT
AFTER RETIREMENT
REHIRED RETIREES LESS THAN AGE 65:
Retirement benefits are suspended.
Return to active status, and contribute to PSERS Submit a completed PSERS Rehired Retiree Reporting Form Enroll in PX group ($10)
Accrue additional service credit
Reapply for retirement benefits upon termination
New benefit is based on the total accrued service.
HB 202 EFFECTIVE MAY 11, 2009 AND IS NOT RETROACTIVE. MEMBERS WHO RETIRED AND RETURNED TO WORK PRIOR TO 5/11/2009 ARE NOT AFFECTED UNLESS THEY HAVE A CHANGE IN EMPLOYMENT STATUS.
RETURNING TO EMPLOYMENT
AFTER RETIREMENT
REHIRED RETIREES AGE 65 AND OVER:
Must make an election
Cease benefits and start contributing Continue benefits and do not contribute
Submit a completed PSERS Rehired Retiree Reporting Form
Election to cease benefits Enroll in PX group ($10) Must reapply for retirement upon termination
Election to continue benefits Do not enroll in PSERS Plan
FAQ’s
Q: Can EE contribute more than $4 or $10 per month?
Q: Are substitute employees under the PSERS plan?
Q: Can EE purchase or transfer out of state service?
Q: Is a PSERS member eligible for life insurance under the plan?
Q: Can an EE retire in June, July or August?
PSERS MEMBER STATEMENTS
Now Available Online!
All PSERS members who contributed in February 2015 have a Member Statement available online. Employers can access the statements from the Employer Reporting Desktop and members can access via their online account.
Less than 2% of PSERS members have accessed their statements. Please encourage members to register for online access; they need a valid email address and designate a beneficiary to enter the site.
This statement provides account balances, service, and an estimated monthly retirement benefit
To view a statement, they can click the ACCOUNT ACCESS. Member Statements are found under Personal Correspondence.
ERSGA Employer Reporting Desktop
ERSGA Website - Account Access
ERSGA Website - Account Access
ERSGA Website - Account Access
PSERS INFORMATION
www.ers.ga.gov
PSERS Plan Page
PSERS Employee Handbook
PSERS Employer Manual
EMPLOYEES RETIREMENT PLAN OVERVIEW
MEMBERSHIP (ERS)
A person employed at a County School System with ERS service can continue contributing to the ERS plan. To be eligible to do so he/she must have:
Greater than or equal to 10 years of ERS membership
Be in a fulltime position 35 hours weekly for nine months out the year Elect within 60 days of hire date (irrevocable)
ENROLLMENT (ERS)
Contact ERS to verify if employee is eligible Member-Complete and submit a TRS/ERS vested
election form (available at www.ers.ga.gov) Employer-Send a letter or memo to ERS with the
following information Name, last four of SSN, hire date and position Job details- FT/PT, hours required to work per week
Employer Reporting website Activate ERS plan Add ERS employee as a new member Manual update and reporting each month
EARNABLE COMPENSATION
What is earnable compensation? “full rate of regular compensation payable to a member employee for his full
normal working time”
What is considered Pension Eligible?“regular compensation for the normal or scheduled working time is
reportable monthly to ERS” Non-pension eligible compensation include
Summer and After School pay Supplements from county or municipal funds (not for full working time)
Pay for overtime Pay for working a holiday
**Contact ERS if unsure about the pension eligibility of a supplement.
CONTRIBUTIONS (ERS)
PLAN CONTRIBUTION GROUPS & FY16 RATES
ERS Old Plan (OAR)
EECON- 1.5% , ERPICKUP- 5%-$7, ERCON- 19.97%
ERS New Plan (NAR)
EECON- 1.5%, ERCON- 24.72%
Contributions are an after tax deduction
CREDITABLE SERVICE
Service Accrual Each month member’s salary and contributions
reported Reporting a full 12 months is required for a year of
service credit
Reporting 10-Month Contract employees
Report annual salary and contributions equally over a 12-month period
At termination or retirement do not report balance of the contract
CREDITABLE SERVICE
Can be earned, transferred into ERS, or purchased
Member Service and Prior Service Refunded Military Service Airtime TRS service transfer
Forfeited Leave Service
FORFEITED LEAVE
Forfeited annual leave, forfeited sick and accrued sick leave
Leave Hours Reported each month Converted to creditable service at
retirement
FORFEITED LEAVE
Forfeited Leave Payment Paid by employer at retirement Employers at retirement are responsible for
all leave hours including those earned at a previous employer
Combined total must be >= 960 hrs or 6 months
Cost is (Total # of leave hours ÷ 160)x Salary x (ERCON rate at retirement)
RETIREMENT APPLICATION PROCESS
ERS retirement applications are available online at
www.ers.ga.gov. Applications must be received at ERSGA
Applications due: Minimum 30 days prior, not earlier than 90
days
Effective retirement date -1st day of the month.
Retirement benefit is paid on the last business day of each
month.
Benefits can be mailed or direct deposited
RETURNING TO EMPLOYMENT-ERSRehired Retiree is : Limited to 1040 hours worked during
calendar year Benefits suspended until next calendar year Retiree must be terminated and remain out
of service for a period of time Normal Retirement Age – 30 days Early Retirement Age – 60 daysNo Pre-existing agreement to return to service prior
to retirement
RETURNING TO EMPLOYMENT-ERS
Employer authorized by law to report ERS members subject to return to work restrictions
Those include: State Departments Board of Regents Retiree’s last employer prior to retirement
(including a local school system)
ERS INFORMATION
www.ers.ga.gov
ERS Plan Page
ERS Plan Guide
ERS Employer Manual
CONTACT INFORMATION
Flavia PeynadoBusiness Operations [email protected]
Lorraine BusterPension Reporting [email protected]