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 ManagerFlavia.peynado@ers.ga.gov

Lorraine BusterPension Reporting AnalystLorraine.buster@ers.ga.gov