Active MembersBenefits, Forms and Services

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Active MembersBenefits, Forms and Services

• Corrections Officer Retirement Plan

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Todays Discussion

• Review all benefits and forms associated with
  Active Membership
• Membership forms/Record Changes
• Contributions
• Service Purchases
• Transfers
• Refunds
• Request to remain in CORP/ASRS

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Membership Form/Record Changes
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Membership Form C1

• All NEW employees must complete form
• New Employees
• Re-hires
• Membership date should reflect the New hire date
• Position is not the number of hours working, but
  the position title

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Record ChangesChange of Beneficiary/Address
Name
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CONTRIBUTIONS
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Contributions

• Just a reminder
• Part-time (working less than 40 hours)
• Position that is not a covered CORP position
• Seasonal Employee

Are not eligible for membership in CORP!
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Service vs. Credited Service

• Service
• This would include Industrial without
  contribution, LWOP, FMLA, STD or LTD
• Credited Service
• Contributions made in full for industrial leave
  and normal pay periods with full, regular
  contributions

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Covered Compensation

• Salary means
• Base wages
• Shift differential pay regular payroll basis
• Holiday pay regular payroll basis
• Vacation/Sick leave USED
• Contributions should NOT be made on
• Fringe benefits
• Lump sum payoffs
• Overtime

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Payment Of Contributions To The System

• Contributions must be made to CORP within FIVE
  working days after the payroll date.
• When submitting payment for adjustments
  (military, back contributions, etc.) please
  submit a breakdown of the following
• Members name
• Social Security number
• Pay period ending dates
• The employee amount paid/adjusted
• The employer amount paid/adjusted

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Contributions during Industrial leave

• This is an ALL or NOTHING Situation
• Member completes form C19
• Remember, its a full contribution from the
  member or nothing at all
• Contributions to the system must be made through
  employers payroll department.
• If member elects to contribute during industrial
  leave, the employer is required to make employer
  contributions A.R.S.38-891(D)

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Form C19
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Contributions During Military Service

• A.R.S. 38-907 governs military service.
• Member must
• Be called to action, volunteer, or ordered by
  Presidential call up
• Be a member of any military establishment in AZ
• Be honorably separated and returns to same
  employer within 90 days
• Provides a DD214 to employer

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Contributions During Military Service

• If member satisfies requirements, then Employer
  must
• Make all employee and employer contributions from
  deployment date until separated from military
  service- up to 48 months
• Verify DD214 information

• Please Note
• If your employee is working for you part-time
  during their presidential call up, the employer
  must still contribute all contributions on behalf
  of the employee when they return to full-time
  status.

DO NOT WITHHOLD CONTRIBUTIONS FROM THEIR PART
TIME PAY!
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USERRA PSPRS/USERRA

• The Arizona State Legislature has enacted
  legislation giving members who serve in the
  military in active duty due to a presidential
  call-up an extra benefit. The employer is
  required to pay both the employer and member
  contributions for the first 48 months of active
  duty due to a presidential call-up.
• A member with more than 48 months of military
  service may elect to make up missed contributions
  for 12 additional months of service. The member
  must pay the 12 months of contributions. Once the
  member contributions have been paid, the employer
  must make the employer contributions.

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Military Service - USERRA

• If a member returns from military service with a
  service-related injury, the employer must make
  reasonable accommodations to return the member to
  a position of comparable pay and benefits.
• If the employer cannot accommodate a disabled
  member to maintain a position eligible for PSPRS,
  the employer may place the member in a non
  designated position of comparable pay, but the
  member must be transferred to ASRS.

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Military Service - USERRA

• Members who serve in the military, including
  active and inactive duty, may make up the
  contributions missed while performing military
  service.
• The member must be honorably separated, provide a
  copy of his/her discharge papers, and return to
  work within the timeframes provided by USERRA,
  which depend on the length of service.
• The member has three times the length of service,
  not to exceed 60 months, to make up
  contributions. The member may not be charged
  interest on the payments. Once the employee makes
  up missed contributions, the employer must must
  make up the missed employer contributions.

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Military Service - USERRA

• CORP does not have a mechanism in place to accept
  monthly payments of additional contributions.
  Most employers make a lump sum payment of both
  the employer and member contributions and enter
  into an agreement with the member to repay the
  total amount.
• Contributions are to be calculated at the rate of
  pay the member would have received but for the
  military service.

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Service Purchase
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Service PurchasesApplication to calculate
severance refund repayment- C1B

• Members who terminated, withdrew their money and
  have come back to work with the SAME employer,
  WITHIN TWO YEARS and APPLY WITHIN 90 DAYS can
  purchase their time paying back the amount
  refunded plus 9 interest

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Service Purchases Application to Redeem Prior
Service Within the Same System C2

• Available to active member who would like to
  purchase previous time within the same system.

Time can be purchased in any increments
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Service Purchases Application to Purchase Active
Military Time -18

• Purchase active military time prior to their
  membership with CORP
• Along with the application they will need to
  submit a copy of their DD214 and 256A (if they
  have one)

This can be purchased in any increments with
MAXIMUM purchase of 48 months
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Form 18
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Service Purchase Out of State Service Affidavit
- COSS

• Allows member to purchase previous time from out
  of state public employers
• Statute specifically qualifies eligibility for
  this purchase if
• Member was a full-time paid corrections officer
  or certified peace officer
• Contributions are not on account with their
  previous system.
• Purchase can be made in any increments

This is a Purchase of time not a Transfer of time
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Form COSS
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Service Purchases Redemption of time with a CORP
employer prior to joinder date - CSR

• Makes available the ability to purchase prior
  time with employer prior to employer joinder date
  with CORP, only if
• Member was employed as full-time Corrections
  Officer.

This purchase can be made in any increments
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Form CSR
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Service Purchases How can member pay for this
service?

• Pay directly out of their pocket
• Transfer of funds from another qualified plan.
• The Federal Law allows members to transfer funds
  from a qualified plan to off set the cost of
  purchasing time. We will accept a
  trustee-to-trustee transfer from one or more of
  the following accounts
• Sec 401(a) Qualified Defined Benefit Plan
• Sec 401(a) Qualified Defined Contribution Plan
• Sec 403(a) Qualified Annuity Plan
• Sec 403(b) Tax Sheltered Annuity
• Sec 408(a) Traditional IRA
• Sec 408(b) Individual Retirement Annuity
• Sec 457 Governmental Plan
• Member needs to contact their financial
  institution.

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Service Purchase Facts

• We do not accept
• Installment payments
• Payments through payroll deductions
• Increase the contribution percentage of the
  member to their purchase
• A member cannot purchase air-time. A member
  must have eligible time in order to purchase
  service.

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Transfers
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Transfer of Service redemption or transfer of
service credits between Arizona retirement
systems U2

• Allows member to either transfer time or redeem
  time that they previously had within another
  public Arizona Retirement System
• Arizona State Retirement System (ASRS)
• Public Safety Personnel Retirement System (PSPRS)
• Elected Officials Retirement (EORP)
• City of Phoenix Employees Retirement (COPERS)
• Tucson Supplemental Retirement System (TSRS)

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Transfer Facts

• Submitting a U2 application does not
  automatically transfer a members time.
• If member accepts a reduced transfer, the member
  extinguishes all rights to the remainder of the
  time. This time is not eligible to be purchased
  in the future.

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Transfer of Service Application to transfer
service credits between CORP employers C1A

• Application is completed when
• You hire an employee, who previously contributed
  to CORP with another employer
• Member terminates employment with you and you
  know they have accepted employment with another
  CORP employer

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REFUNDS

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Refunds Member Terminates, Now what?

• Members may obtain the Form C6, Form U3 and the
  Special Tax Notice from their personnel or HR.
• OR
• Members may contact the System for the forms or
  visit our website at www.psprs.com

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The C6 Form
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Some Things to Remember regarding the C6

• Member completes Page 1
• Initial where appropriate (no Xs)
• Signature and date (required)
• Form Does Not need to be notarized, but Does need
  to be signed by a witness

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Some Things to Remember regarding the C6

• You as the employer will complete two sections on
  page 2
• Employers Certification of Termination
• Employers Certification of Information
• Only if member had five or more years of credited
  service.

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Refunds Completing the U3

• If member is taking a refund of contributions,
  the U3 (Lump Sum Distribution Election Form) is
  REQUIRED

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Refunds Completing the U3

• Member completes Page 1 of form
• They need to elect how distribution will occur
• A Full/Refund to member (There are Tax
  implications)
• B Direct Transfer (roll over of taxable funds to
  qualified plan
• C Partial Transfer (a blend of option A and B)
• If Member Chooses option B or C
• Member must take Form U3 to the financial
  institution of their choice
• The Agreement of Depository Trustee (page 2) must
  be completed and signed by an authorized trustee
  to complete the Direct Rollover

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Refunds Completing the U3

• Taxable Funds are eligible for Direct Rollover to
  the following qualified plans
• 401(a) Qualified Defined Benefit Plan
• 401(a) Qualified Defined Contribution Plan
• 403(a) Qualified Annuity Plan
• 403(b) Tax Sheltered Annuity
• 408(a) Traditional Individual Retirement
  Account (IRA)
• 408(b) Individual Retirement Annuity
• 457 Governmental Plan (Deferred Comp)

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Refunds The Final Steps

• Once C6 and U3 are properly completed, mail
  documents to CORP
• If forms are received and not completed properly
  then
• They will be returned to member or employer for
  completion
• There will be a delay in the refunding of
  contributions

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Refunds The 20 days

• The 20 days begins when
• Form C6 and U3 are received by CORP-completed
• Final contribution has been received by CORP
• Termination is verified by the Employer

• The 20 days DOES NOT begin
• From the members termination date
• The day the member fills out the refund
  application

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Edit deferred option per Susanne
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REQUEST TO REMAIN IN

• CORP/ASRS

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C20 Request to remain in the CORP Plan (Applies
to DOC and Juvenile only)

• A member who has accrued at least five years of
  service with CORP may temporarily accept a non
  designated position and request to remain in
  CORP. This cannot be indefinite or permanent move
  to a non designated position.

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C20 Request to remain in the CORP Plan (Applies
to DOC and Juvenile only)-continued

• This statute has been interpreted to mean that
  the temporary assignment may last no more than
  one year. Legislation is currently pending to
  include this interpretation.
• A local board that approves this request must
  notify the member that the local board will
  review the decision at the end of the year. If
  the member wants to remain in the non designated
  position, he or she should be transferred to
  ASRS.

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C21- Request to remain in ASRS (Applies to DOC
and Juvenile only)

• For an employee who has been in ASRS for 5 or
  more years, is hired or transferred to a new job
  with the same employer, which is a covered CORP
  position and would like to appeal to the local
  board to stay in ASRS

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QUESTIONS?
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CORP Active Members Staff

• LaDawn Toger -Active Member Team Leader
• Sherry Saltsman Member Svc. Team Lead
• Tony Jenkins Transfers/Buybacks
• Connie Vasquez Refunds
• Dorothy Miller Membership/beneficiary
• Cathy Gonzalez Member Services
• Active Fax [phone]