GSEPS Employer Training

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GSEPS Employer Training
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Agenda

• What Is GSEPS?
• GSEPS Pension
• GSEPS 401(k) Savings Plan
• Comparison of Retirement Plans
• Transferring Membership to GSEPS (Opt-In)

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Agenda

• GSEPS Employer Responsibilities
• Enrolling New Employees
• Rehires Which Retirement Plan?
• Enrolling Opt-Ins
• Payroll Reporting
• ERS (pension)
• ING (401(k))
• Implementation Schedule

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What Is GSEPS?
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What Is GSEPS?

• Senate Bill 328 2008 Legislative Session
• GSEPS All NEW employees hired on or after
  1/1/09
• Provide Retirement that appeals to emerging
  workforce
• Portable
• Flexible
• Combine Traditional Pension with a 401(k)

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GSEPS Pension

• Similar to current pension plan
• Guaranteed Annuity for vested members
• Pension based on salary and years of service
• Same vesting 10 years creditable service
• Same service and early retirement eligibility
• Same employee contribution 1.25 (old plan
  different)

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GSEPS Pension

• Different from current pension plan
• Reduced Benefit Factor 1 instead of 2
• No Life Insurance (GTLI) included (no premium of
  0.25)
• Increased service needed for Disability
  retirement and Survivor retirement no
  projections/tiers
• Reduced Employer Contribution rate of 6.54

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GSEPS 401(k) Savings Plan

• 401(k) includes Employer Match, subject to
  vesting
• Separate Vesting Period from Pension Plan
• 5 Years at 20 for each completed year of service

Market Value
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GSEPS 401(k) Employer Match

• Match dollar for dollar on the first 1 of
  contributions (100 match)
• For contributions from 2 through 5, match is
  0.50 on the dollar (50 match)
• Only the first 5 of contributions will be
  subject to employer match
• Total match will not exceed 3 of compensation
• Employees may contribute more, subject to plan
  maximums
• Match invested monthly

No Loans in state 401(k)
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GSEPS 401(k) Savings Plan

• Automatic Enrollment at 1 upon hire unless Opt
  Out of 401(k) (See Employer Responsibilities)
• Employees have 90 days to discontinue and get a
  refund
• Refund at current market value match is
  forfeited
• Request refund through ING not payroll
• After 90 days, can still stop, but NO refund
• Can re-enroll at any time through ING
• All contribution rate changes made by employee
  through ING

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Retirement Plan Comparison
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Retirement Plan Comparison
Old Plan members have slightly different
contribution rates and benefits.
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Transferring Membership to GSEPS(Opting-In)
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Transferring Membership to GSEPS (Opting-In)

• Current employees may transfer membership to
  GSEPS
• Opting-In to GSEPS is an irrevocable decision
• Key Differences
• Pension Benefit Formula cut in half (2 to 1)
• Years of service x Highest average salary x 1
• Pro-rated benefit calculation

Example of Pro-Rated benefit if transferred to
GSEPS
Highest average salary equals highest average
continuous 24 months of earnings. Assumes
Election of Maximum Retirement Option
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Transferring Membership to GSEPS (Opting-In)

• Key Differences (continued)
• Loss of Group Term Life Insurance Coverage
• Increased Length of Service needed for Disability
  and Survivor retirement no projections
• Match on 401(k) of up to 3 of compensation
• Vesting for 401(k) match begins as of date of
  Opt-In, NOT original date of hire

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GSEPS Opt-In Election

• Obtain Opt-In Forecast from ERS Account Access
  website
• Attend Opt-In Informational Meeting
• Opt-In Form available December 2008 ERS website
• Opt-In Effective no earlier than 1/1/09
• No time limit on Opt-In can elect at any time
  in the future

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GSEPS Employer Responsibilities
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GSEPS Enrolling New Employees

• Rehires ALWAYS Verify Retirement Plan
  Eligibility with ERSGA
• All New Hires should be given
• GSEPS Brochure
• ERS Election/Declination of Membership - Send to
  ERS --- If Electing Membership, complete and
  send the following
• 401(k) New Enrollment/Opt-Out Form - Send to ING
  
• Pension Plan Beneficiary designation made online
  by employee www.ersga.org (replaces
  Membership Application)
• 401(k) Beneficiary designation made online by
  employee http//myGApsr.ingplans.com

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GSEPS Enrolling New Employees

• 401(k) Contribution Can Opt-Out
• If employee does NOT indicate 0 on 401(k)
  enrollment form (thus opting-out), employee
  must be Automatically Enrolled in 401(k) with a
  1 contribution.
• If Opt-Out of 401(k) - can always enroll later,
  by contacting ING

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Rehires Which Retirement Plan?
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Rehires Which Retirement Plan?

• Vested when they left (10 years minimum svc)
  rehire under original plan
• Took refund rehire under GSEPS (even if
  repurchased)
• Not vested when they left, but no refund
• Break in Service greater than 4 years rehire
  under GSEPS
• Break in Service 4 years or less rehire under
  original plan
• Rehire? Verify Retirement Plan Eligibility with
  ERSGA at 404-350-6300

Remember pro-rated benefit calculation prior
service under ERS will be calculated at 2 for
retirement benefit
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Enrolling Opt-Ins
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GSEPS Enrolling Opt-Ins

• Review GSEPS Opt-In Election Form for
  Completeness
• Effective Date always first day of month that
  contributions begin
• 401(k) Contribution Election
• Employee Signature
• Enter GSEPS Enrollment in payroll system
• Enter 401(k) Contribution according to
  indicated on form
• FAX Opt-In Election Form to BOTH ERS and ING

Fax Numbers ERS 404-350-6305 ING
800-596-5715
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GSEPS Payroll Reporting (Defined Benefit - ERS)
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GSEPS Payroll Reporting (Defined Benefit - ERS)

• Employers will submit a separate ERS-GTO Salary
  and Contribution Summary Report online each month
• Employers will submit a separate ERS-GTO Monthly
  Detail File each month
• The ERS-GTO Summary Report and Monthly Detail
  File must reconcile before submission
• ACH Detail Information from the current ERS-TO
  Report will be used for the ERS-GTO Report

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GSEPS Payroll Reporting (401(k) - ING)
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ING is 401(k) Plan Administrator

• CitiStreet purchased by ING in summer of 2008
• Any references to CitiStreet are same as ING

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GSEPS Payroll Reporting(401(k) - ING)

• Uploading to SponsorConnect
• Control Total Sheets
• Downloading Feedback Reports (contribution
  changes)

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GSEPS Payroll Reporting (401(k) - ING)

• Uploading payroll file to Sponsor Connect

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GSEPS Payroll Reporting(401(k) ING Sponsor
Connect)
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GSEPS Payroll Reporting(401(k) - ING Sponsor
Connect)
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GSEPS Payroll Reporting(401(k) - ING Sponsor
Connect)
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GSEPS Payroll Reporting(401(k) - ING Sponsor
Connect)
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GSEPS Payroll Reporting(401(k) - ING Sponsor
Connect)
Payroll
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GSEPS Payroll Reporting (401(k) - ING)

• Uploading Control Total Sheet to Sponsor Connect

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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)

• CTS is Excel document included on your CD from
  ING
• Must submit Control Total Sheet along with
  payroll file
• Used by ING to reconcile file you submit to
  amount you will fund
• Tax Commissioner/State Court offices include
  employer amount, but ING will invoice Dept. of
  Revenue/Superior Courts

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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)
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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)
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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)
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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)

• Choose File Type Payroll Control Totals, Browse
  to locate the document on your computer, then
  Click Next

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GSEPS Payroll Reporting(401(k) - ING Control
Total Sheet)

• Print and save your Confirmation Number

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GSEPS Payroll Administration (401(k) - ING)

• Downloading Feedback Reports from Sponsor Connect

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GSEPS Payroll Administration(401(k) - ING
Feedback Report)

• Employees make all contribution changes through
  ING
• ING updates you via the Feedback Report
• Payroll Reporting contact (whoever has Sponsor
  Connect log on) will receive an email from ING
  when a Feedback report is generated

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GSEPS Payroll Administration (401(k) - ING
Feedback Reports)

• Feedback reports for contribution changes

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GSEPS Payroll Administration (401(k) - ING
Feedback Reports)

• Choose File Type Reports. Choose the Date
  Range for which you want to access the Deferral
  Reports. Select the file to download and click
  Download.

Current Month
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GSEPS Payroll Administration (401(k) - ING
Feedback Report)

• Browse to the directory to which you want to save
  your report and click save.
• The download is complete when you see the
  Download Complete box.

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Feedback Report Format
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GSEPS 401(k) Reporting Questions - ING

• Loading Excel File or Excel Functionality
• 1-800-698-7719
• Please upload test to ING to ensure your log-on
  works

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GSEPS New Hire Recap

• ERS Election/Declination of Membership (Tax
  Offices ONLY) send to ERS --- If Electing
  Membership, the following must be completed
• 401(k) Enrollment/Opt-Out Form send to ING
• If no opt-out (i.e. 0 entered on form), set up
  in payroll at employee has indicated on form.

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GSEPS Implementation Schedule

• Payroll System modifications should be currently
  underway
• Go Live January 1
• ERS Member Newsletter Download from website
• Opt-In Information Meetings Through December -
  statewide
• Forecast Calculator on ERS website
• Delivery of Retirement Election/Declination Form,
  GSEPS Brochures, and 401(k)Enrollment/Opt-Out
  Form mid-December (also on website)