GPRS
Presentation
Luis Argueta, Employer Communications
Agenda For Annual Salary Threshold, pt. 1
• Intro to Earnings Threshold
• Basic Rule
• Salary Projections
– Scenarios
• PERA Tracked Earnings
– View Tracked Earnings
Public Employees Retirement Association
Agenda For Annual Salary Threshold, pt. 2
Public Employees Retirement Association
• Part 1- Recap Rewind
• Threshold Description
• Terminations
• Delayed Enrollment
• Report walkthroughs on ERIS
• Report: Prior vs current year
• Refund details
• Excluded, then earnings exceed threshold
Intro to
Earnings Threshold
PERA Eligibility Time and money
Job description
• Part-time
• Full-time
• Hourly
• Salaried
Eligibility due to salary
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Intro to Earnings Threshold
Public Employees Retirement Association
Basic Rule
Historical Earnings Threshold Monthly Salary Thresholds through the years
Date Per Month
July 1, 1988 through December 31, 2014 $425
May 1, 1981 through June 30, 1988 $325
June 3, 1977 through April 30, 1981 $250
March 24, 1974 through June 2, 1977 $150
July 1, 1961 through March 23, 1974 $75
Prior to July 1, 1961 $50
Public Employees Retirement Association
Basic Rule of Eligibility
PERA membership under a DBP-
1) Required for public employees
2) who have annual earnings in excess of PERA’s salary threshold
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With some exceptions…
Public Employees Retirement Association
Annual Salary Threshold
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General employment and school-year
Public Employees Retirement Association
$425 is still relevant
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$5100? $3800?
Public Employees Retirement Association
12 x $425 = $5100
9 x $425 = $3800
Salary Projections
Employee projections One position
Public Employees Retirement Association
Part-time, 20hrs/wk @ $16/hr
Time x Money 20 x 16 = $320/week x 52 = $16640/year
Employee projections ??? x money
Public Employees Retirement Association
Part-time, ??hrs/wk @ $16/hr
Average time x Money 10 x 16 = $160/week
x 52 = $8320/year
Employee projections School calendar days
Public Employees Retirement Association
Part-time, 3hrs/day @ $9/hr
Time x Money 3 x 9 = $27/day
x 170 days = $4590/year
Employee projections 2 positions
Public Employees Retirement Association
PT, 6hrs/wk @ $10/hr
(6 x 10) + (6 x 12) = $132/week x 52 = $6864/year
PT, 6hrs/wk @ $12/hr
Employee projections 1 position + Missing picture
Public Employees Retirement Association
? x 17 = $???/week x 52 = $???/year
NEW Part-time, open ended @ $17/hr
Notice of Non-Covered Employment
Public Employees Retirement Association of Minnesota
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Required for employees excluded
due to salary
Annual Threshold
Provisional Enrollment
Public Employees Retirement Association of Minnesota
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Annual Threshold
Membership Eligibility Checklist
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A great companion resource!
Public Employees Retirement Association
PERA Tracked Earnings
Defined Benefit Plan (DBP)
Threshold Monitoring
Threshold Monitoring
Tracked earnings
Part 1- Recap Rewind
Earning Amounts Calendar and Fiscal Year calendar earnings
Public Employees Retirement Association
Time x Money 3 x 9 = $27/day
x 170 days = $4590/year
$5100 – Calendar year $3800 – Fiscal year
Q&A Highlight
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Notice of Non-Covered Service & Provisional Enrollment form
Public Employees Retirement Association
Q&A Highlight
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Continued
Public Employees Retirement Association
Threshold Description
Eligibility with an employer PERA eligible positions with one employer
Public Employees Retirement Association
individual employer
City A City B
Annual Salary Threshold Report
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Who is included in an Annual Salary Threshold report?
– Employee: full year of earnings in the previous year
– did not exceed the threshold
Annual Threshold
Public Employees Retirement Association
Partial Year enrollment
Partial year of earnings:
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Annual Threshold
Public Employees Retirement Association
Partial 2016
Full 2017
Refund?
Employee did not meet Threshold
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If earnings do not exceed the threshold
Annual Threshold
Partial 2016
Public Employees Retirement Association
$2000 $3000
Threshold Timeline Examples
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Calendar year annual threshold
Public Employees Retirement Association
Calendar Year 1/1 - 12/31
Threshold is $5100
Example 1
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Calendar year annual threshold
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Example 2
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Calendar year annual threshold
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Example 3
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Calendar year annual threshold
Public Employees Retirement Association
Threshold Timeline Examples
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Fiscal year annual threshold
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Fiscal Year 7/1 - 6/30
Threshold is $3800 for school year employees
Example 1
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Fiscal year annual threshold
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Example 2
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Fiscal year annual threshold
Public Employees Retirement Association
Example 3
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Fiscal year annual threshold
Public Employees Retirement Association
Public Employees Retirement Association of Minnesota
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Annual Salary Threshold Report - ERIS Annual Threshold
Terminations
Terminated
Projected at hire -
Full year of earnings =
Did not meet the threshold
40 x 15 = $600/week x 52 = $31200/year
Public Employees Retirement Association
Threshold Status Change Terminations
Public Employees Retirement Association
Example
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Terminations
Public Employees Retirement Association
Full-time, 40hrs/wk @ $15/hr
40 x 15 = $600/week x 52 = $31200/year
Provisional Enrollment
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Documentation
Provisionally Enrolled Employee terminates:
1) without exceeding the threshold
2) before PERA has received a full year of earnings.
Public Employees Retirement Association
Delayed Enrollment
Scenario 1 Exclude, monitor and enroll
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Scenario 2 Exclude, monitor and enroll
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Missing piece of the puzzle
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Your records vs ours
Public Employees Retirement Association Public Employees Retirement Association
The report asks about prior years, but what about the current year?
Future development ERIS report enhancements
Enhancements to report
CY 2017 – Feb 2018
FY 2018 – August 2018
Public Employees Retirement Association
Employee will not qualify for PERA
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In the meantime…
1) Complete the report
2) Stop withholding contributions
3) Email PERA at [email protected] to:
a) Tell us the paid date of the final contribution
b) Request a manual refund of the current year
Public Employees Retirement Association
Refund details
Employers
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Credit memo
Credit memo via email
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Employees
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Check by mail
Check to home address
1099R issued by PERA
• 10% Federal tax withheld
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Excluded, then earnings Exceed Threshold
Employee exceeds threshold Reporting
Public Employees Retirement Association
1)
2) Earnings “..establish eligibility retroactively to the
first month that $425 was reached.”
Resources for Employers
Employer Response Line
– 651-296-3636 / 888-892-7372
PERAphrase newsletter
Employer Manual
MNPERA.org
– PERA 101: Go2 Resource
– FAQs
– Reporting Requirements
– Education: Next Webinar: Annual Threshold, pt. 2
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That’s a wrap!
Resources for Employers
Public Employees Retirement Association