Agenda

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Agenda

• Eligibility
• TRS
• PERS
• Scenarios
• Edit messages
• Correction Reports
• Statement of Account

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Eligibility
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Membership Eligibility

• Three steps to Successful Eligibility Management

• Determination

• Documentation

• Periodic Review

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Determination
You are responsible for making the initial
determination of an employees eligibility for
membership.

• The Retirement Status Form
• Position Eligibility Worksheet
• New Hire Pyramid

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(No Transcript)
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TRS Plan 1

• Member
• Person who has established membership and has not
  withdrawn
• Former Member
• Person who has separated from service and has
  withdrawn

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TRS Plan 1 Member

• All TRS Plan 1 members you hire must continue
  membership in TRS Plan 1, regardless of the
  position you hire them into.

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TRS Plan 1 Former Member

• If hired into a Faculty position
• A former member of TRS Plan 1 is treated as if
  they have never been a member of TRS
• If the individual is eligible for HERP coverage,
  they must join HERP immediately
• Less than full-time contracts/not eligible for
  your HERP, provide a quarterly substitute report
  per RCW 41.32.013

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TRS Plan 1 Former Member

• If hired into a non-teaching position
• Eligible position
• Report in your HERP if appropriate or in PERS
  until TRS Plan 1 membership is reestablished
  (payback withdrawn TRS Plan 1 member
  contributions)
• Ineligible position
• Do not report on transmittal until TRS Plan 1
  membership is reestablished
• Report in your HERP if appropriate

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TRS Plans 2 3

• Eligible Position
• - An eligible position is one that normally
  requires five or more months of at least 70
  hours of earnable compensation during September
  through August of the following year
• Ineligible Positions
• - Provide a quarterly substitute report if they
  are working in an ineligible position and not
  contributing to HERP
• - RCW 41.32.013

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PERS Plans 1,2, 3

• The initial determination of eligibility must be
• based on the position
• Eligibility can also be determined by the person
• Employees working in more than one ineligible
• position may be eligible for membership
• Job share
• Only consider work performed for your
  organization
• Employees in ineligible positions cannot
  establish
• membership

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PERS Plans 1,2, 3
A position is eligible if it normally requires at
least five months each year in which regular
compensation is earned for at least 70 hours per
month

• For a new position Normally means a position
• that requires at least five months at 70 hours
  for
• two consecutive years.
• For an existing position Normally means that
• the position will continue to be eligible if
  it requires
• at least five months of 70 hours or more hours
• during at least one year in any two year
  period.

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Exempt From PERS

• Current members of Higher Education Retirement
  Plans (HERP)
• Independent Contractors
• WAC 415-02-110
• Complete Contractor Questionnaire
• Contact DRS
• Student Spouse of Student
• WAC 415-108-520

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PERS Plans 1 2TRS Plan 2

• A member of PERS Plans 1, 2 or TRS Plan 2 who has
  withdrawn their contributions, is treated as if
  they have never been a member of PERS or TRS
• If the individual is eligible for HERP coverage,
  they must join HERP immediately

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New Members to PERS

• New to PERS on or after March 1, 2002
• Report member in Plan 2 on the first transmittal
• Unless the member turns in a Member Information
  Form (MIF) choosing Plan 3
• Member has up to 90 days to make their plan
  choice between PERS Plan 2 and PERS Plan 3

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New Members to PERS

• Submit plan choice record via the transmittal
  after the MIF is received
• Plan choice date
• Date the member signed the form
• Plan choice code
• 2C (2 choice) member chooses Plan 2
• 3C (3 choice) member chooses Plan 3
• 3D (3 Default) member doesnt choose a plan
  within 90 days and is defaulted into Plan 3

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PERS Plan 2 Members

• Transfer Option
• Established PERS Plan 2 membership prior to March
  1, 2002
• Report in PERS Plan 2 on the first transmittal
• PERS Plan 2 member who did not transfer during
  the initial transfer window has the option to
  transfer to PERS Plan 3 each January

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PERS Plan 2 Members

• Membership chosen
• PERS Plan 2
• A member who has chosen Plan 2
• Report member in PERS Plan 2 on the transmittal
• May never transfer to PERS Plan 3

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PERS Plan 3 Members

• Membership chosen
• PERS Plan 3
• A member who has chosen or defaulted into Plan 3
• Report member in PERS Plan 3 on first transmittal
• Member has up to 90 days to choose an investment
  program and contribution rate
• Default into WSIB/Rate Option A after 90 days
• Report no member contributions until MIF is
  received or member defaults

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Plan 3 Lost Earnings

• If employer misses a deduction deduct double
  next reporting period.
• Potential for Lost earnings be consistent with
  application. Employer or member can notify DRS.

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Position Management

• Determine what positions you have
• Assign each position a unique identifier
• Any type of numbering system applied consistently
• Keep track of each position
• Determine the positions eligibility by reviewing
  the number of hours worked under each unique
  identifier

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Documentation

• All determinations of position eligibility
  should be documented
• Numbering System
• Position Eligibility Worksheet
• Determinations should be kept and maintained in a
  separate file that is kept 60 years according to
  retention schedules

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Periodic Review
Positions change!

• Review all less than full time positions on a
  regular basis (at least yearly)

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Scenario A
You hire a TRS Plan 1 member as your Payroll
Manager that is eligible for your HERP.
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Scenario A
Eligible for membership? Yes What Plan? The
member must continue in TRS Plan 1.
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Scenario B
You hire a TRS Plan 1 member as part-time faculty
that is not eligible for your HERP.
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Scenario B
Eligible for membership? Yes What Plan? TRS
Plan 1
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Scenario C
You hire a TRS Plan 1 member as a part-time
faculty that is eligible for your HERP.
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Scenario C
Eligible for membership? Yes What Plan? The
member must continue in TRS Plan 1.
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Scenario D
You hire a TRS plan 1 former member to teach
night school for one quarter.
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Scenario D
Eligible for Membership? No Provide
Employee with a quarterly report.
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Scenario E
An inactive PERS Plan 3 member works for the
Highline Community College part-time (40 hours
each month) as a janitor and also works for the
Bellevue Community College part-time (also 40
hours each month) as a cafeteria chef.
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Scenario E
Eligible for membership? No What System and
Plan? The employee is not eligible for
membership. The employee cannot combine the
hours of employment with separate employers to
establish membership.
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Scenario F
An employee works in an ineligible position from
September 10th through March 15th. On March 16th,
you redefine this as a PERS eligible position.
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Scenario F
When do you begin reporting? March
Transmittal March 16th begin date What
compensation should be reported? All March
Compensation
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Scenario G
A member in an eligible position takes an
extended leave of absence and does not have at
least five months with 70 hours or more of
compensated employment in a year.
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Scenario G
Eligible for membership? Yes What System and
Plan? An unpaid leave of absence does not
affect the eligibility of a position. If the
position normally requires 5 months of 70 hours
or more, the position remains eligible.
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Scenario H
A PERS member working full-time for Skagit Valley
College takes and unpaid maternity leave of
absence for 6 months. You hire an individual to
work temporarily in this full-time position
during the leave of absence period.
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Scenario H
Eligible for membership? Yes Why or Why
Not? The employer placed the temporary employee
into an eligible position. Whoever works in that
position even for just one day is eligible.
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Scenario I
You hire an inactive TRS Plan 3 member with no
membership history in PERS into a PERS eligible
position.
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Scenario I
Eligible for membership? Yes What System and
Plan? PERS Plan 2 and member has up to 90 days
to choose Plan 2 or Plan 3
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Scenario J
On May 31, 2006, Cascadia Community College hires
an PERS Plan 2 member who has been out of the
work force for 7 years into a position requiring
100 hours per month.
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Scenario J
Eligible for membership? Yes What System and
Plan? PERS Plan 2 with the option to transfer
in January 2007.
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Scenario K
Big Bend Community College hires 4 individuals
into a PERS eligible position. Each member will
have 2 hours of job duties each day.
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Scenario K
Eligible for membership? Yes Why or Why
Not? Although separately the individuals do not
work 70 hours a month for 5 months, the position
requires that much work. Each of the
individuals are eligible for membership and
should be reported.
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Scenario L
During a review, it is discovered that an hourly
position that had been defined as ineligible has
actually required the employee to work 70 hours
or more each month over the last two years.
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Scenario L
What will happen? The employer must
retroactively report from the first month of the
first year in which 70 or more hours were
worked. WAC 415-108-690
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Scenario M
After just 4 months of employment, it is
discovered that a position that had been defined
as eligible has actually required the individual
to work only 40 hours per month.
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Scenario M
Eligible for membership? No Why or Why
Not? PERS Plan 1 and 2 Back out the 4 months
of earnings,refund the members portion of the
money and submit an end date. PERS Plan 3
Contact DRS.
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Scenario N
A PERS Plan 2 member leaves an eligible position
with Yakima Valley College to serve in a project
position for 6 months with the same employer. The
project position will require full-time work and
the member will return to his old position.
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Scenario N
Eligible for membership? Yes Why or Why
Not? The employee accepted the full-time
position conditioned on returning to a
permanent eligible position upon completion of
the project. WAC 415-108-680
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Scenario O
Walla Walla Community College hires an
independent contractor to work for 2 years as a
systems analyst.
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Scenario O
Eligible for membership? No Why or Why
Not? Only an employee of a PERS employer is
eligible for PERS membership. Because
independent contractors are not employees they
are exempted from PERS membership. WAC
415-02-110
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Scenario P
On April 5th, 2006, Wenatchee Valley College
hires and employee who has never been a member of
PERS and they quit June 3, 2006 prior to making a
plan choice. You hire them July 10th, 2006 into
an eligible position.
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Scenario P
Eligible for membership? Yes What System and
Plan? PERS Plan 2 and member has up to 90 days
to choose Plan 2 or Plan 3
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Transmittal Reporting

• The information submitted on your transmittal
  report is edited for accuracy
• If an error is discovered, the transaction maybe
  rejected, corrected or left as is
• A Transmittal edit report is sent to you which
  lists the errors found and the actions taken

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Edit Messages

• Itemized by record type
• A member can have more than one record reject
• Watch for rejected Defined Contributions
• Transmittal Reconciliation Information
• Statement of Account

Members money did not get posted to their account
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Edit Messages
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Correct Reporting
CT Payment (100) CR CT Billing 100
DR A/R Balance (0.00)
Payment 100
DRS A/R
DRS Accepts 100
Transmittal 100
100 Posted to Member/Employer Account
Member/ Employer Account
Scenario Employer reports a correct transaction
for a member
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Rejection
Transaction reported is incorrect and the system
cannot tell what is wrong. The transaction is
not posted.
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Rejected Transaction
CT Payment (100) CR CT Billing 0.00
DR A/R Balance (100) CR
Payment 100
DRS Rejects 100
Transmittal 100
DRS A/R
No Data Posted, Since All Rejected
Edit Report
Member/Employer Account
Scenario Employer reports 100.00 Member
Employer Contributions for a member that is
rejected
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Correcting the Rejection
CT Payment (100) CR CT Billing (0.00)
DR TC Billing 100 DR A/R Balance
(0)
Payment 00
DRS A/R
Correction Transmittal 100
DRS Accepts 100
100 posted to member/ employer account
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Information Changed
Transaction is correct, but the system can
determine the problem and adjusts accordingly .
The adjusted transaction is posted to the
account.
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Information Changed Transaction
CT Payment (100) CR CT Billing 150
DR A/R Balance 50.00 DR
Payment 100
DRS Recalculates to 150
DRS A/R
Transmittal 100
The correct amount of 150 is posted to the
account
Edit Report
Member/Employer Account
Scenario Employer reports incorrect member
employer contributions based on the compensation
reported. Member and Employer contributions are
recalculated
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Warning
The transaction appears questionable but is
within allowable limits and is accepted and
processed.
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Rejection Information Changed Warning
Member Contributions are invalid based on
contribution rates for Plan 1. DRS changed member
contributions from 30.00 to 50.00. Net change
was 20.00. Reported compensation is greater
than 10,000 (or lt -10,000). Begin Date
submitted was ignored and transaction processed.
No employment information found on file for
this member. Information was not reported for
this member. Information was last received for
the 03/04 reporting period. Please submit the
necessary information. Earning Period outside
Begin Date/End Date. The Member Profile Record
does not exist.
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Contact Us

• Internet
• www.drs.wa.gov
• Employer Support Services
• 1-800-547-6657, option 6, then option 2
• or [phone]
• drsemployer_at_drs.wa.gov