Au Authori rized Ag Agent t Trai aining 1 Authorized Agent - - PowerPoint PPT Presentation

Au Authori rized Ag Agent t Trai aining

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Authorized Agent Training

2

Agenda

• Insurance
• Retirement
• Employer Reporting

3

Member Services

Julie Nagel Peggy Vaagen 4

Benefit Enrollment Specialists

Darby Henke Kim Humann Geri Frohlich 5

Health Insurance Plan

Sanford Health Plan

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Eligibility: Permanent Employee

• Works at least 20 hours per week for 20 or more weeks per year
• Is at least 18 years of age
• Holds a position that is regularly funded and not of limited duration
• Cannot have dual contract if two spouses both work for state

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Eligibility: Temporary Employee

• Position is not regularly funded
• Must be 18 years of age
• Must meet ACA definition of “full-time” employee
• work at least 30 hours per week or
• 130 hours in a month
• Refer to https://ndpers.nd.gov/employers/employer-

resources/affordable-care-act-aca/ to assist with determining if coverage should be offered

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Affordability: ACA Requirement

• Coverage must be affordable for employees that

meet ACA “full-time” employee definition

• Cannot require employee to pay more than 9.5% of

household income towards single premium

• Applies to both Permanent employees & Temporary

employees meeting ACA “Full-Time Employee” definition

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Affordability: NDPERS Requirement

• Permanent employees that do not meet ACA

“full-time” definition:

• working 20-29 hours per week
• employer must pay at least 50% of single premium

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Dependents

฀ Spouse ฀ Children ฀ Until the 1st of the month following 26th

Birthday

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Enrollment

฀ 31 day enrollment period for new hires ฀ Coverage effective the first of the month following the

date of hire

฀ Enroll through MSS or application form ฀ Annual Enrollment Season ฀ Coverage effective January 1 ฀ Enroll through MSS or application form ฀ 2020 Plan Year – was held October 14-November 1 ฀ Temporary Employee Special Enrollment Season ฀ Coverage effective January 1 ฀ Must complete application form

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ACA Special Enrollment – Temporary Employees

• Measurement Period to review employees to determine if any

meet ACA full-time employee definition and need to be offered coverage

• Special window following annual enrollment – notice provided to

employers each year

• Special window for 2020:
• November 18 through December 6, 2019
• Coverage effective January 1, 2020

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Special Enrollment Periods

฀ Within 31 days of: ฀ Loss of coverage ฀ Marriage ฀ Birth, adoption of child or legal guardianship ฀ Effective Date: 1st of month following event

except in case of birth

฀ Birth = first of month in which birth occurs

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Levels of Coverage

• Basic
• Coverage for services received in North Dakota not

provided by a PPO provider

• Out-of-state services
• Preferred Provider Organization (PPO)
• Freedom of choice to use any provider in North Dakota

1 5

Employer Guide

• Available on Website
• General information on plan forms & their use

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Forms

• New Hire Kit
• Health Insurance Application or

Change SFN 60036

• Acknowledgement of or Decline

Offer of Health Insurance Coverage SFN 60711

1 7

Forms

฀ Transfer Form: ฀ Notice of Transfer SFN 53706 ฀ Termination Form: ฀ Continuation of Group Insurance

Coverage (COBRA) SFN 14120

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Forms

฀

Qualifying Events:

฀

Health Insurance Application or Change SFN 60036

฀

Marriage, Birth/Adoption, Loss of Coverage

฀

Supporting Documentation needed:

฀

Birth – if adding eligible grand-child, must provide birth certificate & Grandchild Eligibility Verification form

฀

Adoption – copy of adoption/placement papers

฀

Legal guardianship – copy of papers

฀

Return from USERRA military leave – copy of DD214 needed. Effective date of coverage is first of month in which discharge occurred.

฀

Creditable Coverage from previous insurer to prove loss of coverage.

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Employer Based Wellness Program

• Commitment Agreement signed by agency head
• Wellness Coordinator appointed
• Wellness Coordinator attends or reviews summer

coordinator workshop

• Distribute communication materials to agency

employees on a monthly basis

• Develop & submit Wellness Program (Wellness

Discount Application)

• Implement Wellness Program during plan year
• July 1 through June 30

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Employer Based Wellness Program

• Total of 5 points needed
• Communication materials & Wellness workshop attendance = 1 point

(required)

• One Day Program = 1 point
• Multi-Day Program = 2 points
• Comprehensive Wellness Plan = 4 points

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ACA Minimum Contribution Testing

• Annual mailing from carrier each fall to all Political

Subdivisions on the Grandfathered Plan

• All employers must complete and return to carrier
• Ensures ACA compliance for Plan to remain

Grandfathered

• Employers cannot charge the employee 5% or more of

premium compared to % of premium the employee was paying as of March 23, 2010

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ACA Minimum Contribution Testing

• Eligibility Information needed
• # of Full time Employees on Payroll
• # of Employees eligible for Health Insurance
• Minus the number covered under Spouse coverage, other

employer group coverage or Medicare

• Number from the Underwriting Requirement for your group
• Contribution Information: Contribution Amount or Percent

(should equal 100%)

• March 23, 2010 Contribution: Amount/% paid by the

Employer and Employee for Single and Family Coverage

• Current Contribution: Amount/% paid by the Employer and

Employee for Single and Family Coverage

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ACA Minimum Contribution Testing

• If you meet the requirements, participation in

Grandfathered Plan can continue

• If you do not meet requirements, we will notify you

with your options of other coverage

• Small employers will lose eligibility to participate in NDPERS

Health Plan

• Large employers will lose Grandfathered status and will be

moved to the NDPERS Non-Grandfathered Plan

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ACA Participation Requirement

Lapse in coverage results in:

• Loss of Grandfathered status
• Loss of eligibility for the employer to

participate in NDPERS

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Life Insurance Plan

Voya Financial

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Eligibility

• Permanent Employee
• At least 18 years of age
• Work at least 20 hours a week
• 20 or more weeks a year
• Position is regularly funded & not of limited duration
• Spouse
• Children
• Until the 1st of the month following 26th birthday

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Eligibility: Part-time/Temporary Employee

• Position is not regularly funded
• Individual must be working at least 20 hours

a week for at least 20 weeks each year

• Must be 18 years of age
• Temporary must pay full premium

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Enrollment

• Within 31 days after hire date.
• No Evidence of Insurability required up to

$200,000 guarantee issue

• No Evidence of Insurability for the 1st $50,000 for

spouse

• Annual Enrollment - subject to approval
• Evidence of Insurability required for all levels of

coverage greater than an increase in Employee Supplemental of $25,000 up to $200,000 guarantee issue

• Transfers from one covered employer to another

covered employer

• Not eligible to change coverage levels

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Levels of Coverage

• Basic = $7,000 (coverage paid by employer)
• Employee Supplemental *
• Up to $400,000 total
• New hire - EOI required for amount above $200,000
• Basic Dependent *
• $2,000, $5,000, $7,000 or $10,000
• Spouse Supplemental *
• Up to 50% of Employee Supplemental amount
• New Hire – EOI required for amount above $50,000

*Premium is based on age and level of coverage.

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Employer Guide

• Available on Website
• General information on plan forms & their use

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Forms

• New Hire Kit
• Life Insurance Enrollment/Change

SFN 53803

• Life Insurance Designation of

Beneficiary SFN 53855

• Evidence of Insurability

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Forms

฀ Notice of Transfer SFN 53706 ฀ Terminating Employees:

– Receive a packet from Voya with Portability & Conversion options

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RETIREMENT OVERVIEW

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Defined Benefit (DB) Plan

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Defined Benefit Plan

• NDCC 54-52
• Hybrid defined benefit plan
• Commonly referred to as the “DB Plan”

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Mandatory Participation

• At least 18 years of age
• Regularly funded position and

not of limited duration

• Works at least 20 hours per week

for 20 or more weeks per year

• Public Safety Plan (former Law Enforcement Plan): Works at

least 32 hours per week for 20 or more weeks per year

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Optional Participation

• Temporary position
• Regularly funded position but does not work 20

hours a week for more than 19 weeks a year

• Must be 18 years of age
• Must enroll within 6 months of part-

time/temporary employment

• Employee contributes 15.26% of gross salary
• n an after-tax basis
• Employee can not be an active participant in

another employer-sponsored retirement plan (includes public or private sector plans)

• Employer is prohibited from paying any portion of

contributions

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Contribution Allocation - Current

NDPERS distributes into these accounts

Your employer sends to PERS

15.26%

• f your gross earnings each pay period

(does not include overtime)

7%

Employee Account (Your Member Account Balance)

7.12%

Employer Account (General Pool of Funds)

1.14%

Retiree Health Credit

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Contribution Allocation – Effective for New Hires 01/01/2020

NDPERS distributes into these accounts

Your employer sends to PERS

15.26%

• f your gross earnings each pay period

(does not include overtime)

7%

Employee Account (Your Member Account Balance)

8.26%

Employer Account (General Pool of Funds)

4

Service Credit and Vesting

• You receive one month of service credit for each month

NDPERS receives contributions on your behalf.

• Vested means you are legally entitled to a monthly benefit

from NDPERS.

• You become vested the earlier of:
• Achieving 36 months of service credit, or
• Attaining 65 years of age while employed
• This is an ANNUITY. . . You can receive a monthly retirement

payment for the rest of your life.

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Dual Membership

(Combine service credit for vesting and normal retirement)

• NDPERS Defined Benefit Retirement Plans:
• Defined Benefit Hybrid Plan (Main)
• Public Safety Plan
• Judges Plan
• Highway Patrol Plan
• Other Qualifying State-Sponsored Retirement Plans
• Teachers Fund for Retirement (TFFR)
• Teachers Insurance and Annuity Association (TIAA)

(through North Dakota University System only)

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DB Retirement (hired before Jan 1, 2016)

Normal Retirement Early Retirement** Lifetime benefit

• At the earlier of:

Lifetime benefit

• Reduced by 6% for each year or

.005 for each month if: Attain Age 65 OR NOT Age 65 OR Achieve Rule of 85 Member’s Age + Service Credit Example: 55 years + 30 years

• f service = 85

HAVE NOT met Rule of 85 **Must be at least age 55

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DB Retirement (hired on or after Jan 1, 2016)

Normal Retirement Early Retirement** Lifetime benefit

• At the earlier of:

Lifetime benefit

• Reduced by 8% for each year or

.667 for each month if: Attain Age 65 OR NOT Age 65 OR Achieve Rule of 90 (with minimum age of 60) Member’s Age + Service Credit Example: 60 years + 30 years = 90 HAVE NOT met Rule of 90 **Must be at least age 60

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DB Retirement Benefit Formula - Current

• Final average salary (FAS)
• The average of your highest 36 salaries during the

last 180 months worked

• Benefit multiplier
• 2.00%
• Years of Service
• One month of service for each contribution

(FAS x 2.00% x YOS = Single Life)

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DB Retirement Benefit Formula –

Effective for New Hires January 1, 2020

• Final average salary (FAS)
• The average of your last 36 salaries
• Benefit multiplier
• 1.75%
• Years of Service
• One month of service for each contribution

(FAS x 1.75% x YOS = Single Life)

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Benefit Options

฀ Single Life ฀ Joint & Survivor 50% ฀ Joint & Survivor 100% ฀ Twenty Year Term Certain ฀ Ten Year Term Certain ฀ Partial Lump Sum Option ฀ Graduated Benefit Option 47

EXAMPLE: RETIREMENT BENEFIT

Disclaimer: This example may not be interpreted as a personal calculation

Age at Retirement: Member (Female) : 59.9 years Spouse (Male) 67.5 years

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Disability Benefits in the DB Plan

• Disability Retirement
• Vested after 6 months
• Must separate from employment
• Determined by Medical Consultant or

Social Security Award

• 25% of Final Average Salary (FAS)
• $100 per month minimum
• Eligibility will be recertified

49

DB Survivor Benefits

• Assumption: Member is not receiving a retirement benefit
• Lump Sum Payment
• Applies to single and non-vested members
• Lifetime Payments

– Surviving Spouse Only

• 50% of Normal Single Life or
• 100% Joint & Survivor Payment
• If deceased was age 65 or met “Rule”

(at normal retirement)

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Member Account Balance Options at Separation of Employment

NOT Vested Vested Leave member account balance with NDPERS

• Withdraw later
• Return to service, accrued service and

account balance are recognized

• Member account balance continues to

accrue interest at 7.25% currently

• 7% effective Jan 1, 2018

Receive a lifetime annuity (retire as early as age 55/60 (based upon hire date)

• r attaining “Rule”, or age 65, whichever is

earlier). Interest no longer accrues when you receive retirement benefit. Lump Sum Refund

• Federal tax withholding
• ND state tax withholding
• IRS Penalty for early withdrawal

Lump Sum Refund

• Federal tax withholding
• ND state tax withholding
• IRS Penalty for early withdrawal

Direct Rollover

• Taxable & non-taxable monies
• Avoid tax & early withdrawal penalties

Direct Rollover

• Taxable & non-taxable monies
• Avoid tax & early withdrawal penalties

Combination rollover/refund Combination rollover/refund 51

Can I Invest MORE in My DB Plan?

YES!

Purchasing service may: 1.Vest you sooner 2.Increase your lifetime benefit 3.Increase your RHIC benefit 4.Get you to “Rule” sooner

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Purchase of Service Credit

฀ Previous Employment:

– Non-Covered ND Governmental Service – Out-of-State Governmental Service – Refunded NDPERS Service

฀ Federal Service ฀ Legislative Service ฀ Military Service (maximum of 48 months) ฀ Leave of Absence ฀ Generic (maximum of 60 months)

5 3

Purchase Provisions

• Cost of Purchase
• Actuarial Calculation
• Online (Member Self Service)
• Request for Purchase SFN 53718
• Payment Methods
• Direct Rollover/Transfer of Pre-Tax

Dollars from other retirement plans

• Payroll Deductions (pre or post-tax)
• Periodic Payments

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Sick Leave Conversion

Final Average Salary (FAS) X 15.26% (Contribution Rate) X Number of Months (hours divided by 173.3) =$Cost

If your employer pays out a portion of your sick leave, can you still convert your sick leave balance for service purchase? Yes! Note: sick leave conversion can only occur when a member separates from service. 55

Deferred Compensation Plan

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What is Deferred Compensation?

• Voluntary supplemental retirement plan
• Investing Pre-tax dollars to lower your taxable income
• Taxed at the time of distribution
• Invest with Plan Provider you select
• You select how your money is invested
• Increase, decrease, suspend contributions at any time

57

Investing

• NDPERS Companion Plan
• Quick Enrollment (TIAA)
• 9 eligible provider companies
• Participate with multiple providers
• Change providers or complete partial/full

transfer of funds to another PERS 457 provider any time

• You select how your money is invested

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Enrollment

• Enroll, suspend, or change contributions any time
• Complete SFN 3803
• Online Member Self Service (MSS)
• Quick Enrollment
• Compete SFN 54362 or select

NDPERS Companion Plan online (MSS)

• Administered by TIAA
• Automatic $25/month

59

Annual Deferral Limits

• Minimum
• $25 per month
• Maximum
• The lesser of:
• 2019 Annual IRS Limit: $19,000/year
• r
• 100% of Taxable Compensation
• “Other 457 plans”
• Employer is responsible for tracking annual limits

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Catch-up Provisions (2 options)

• 50+ Catch-Up
• Additional $6,000 (total of $25,000)
• Complete SFN 3803
• 3-Year Catch-Up
• Up to $38,000 yearly
• 3 consecutive calendar years
• prior to year of “normal” retirement
• One time only – NDPERS approved
• Complete SFN 51501 and 3803
• Cannot be used at the same time

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Deferred Lump Sum Contributions

• Lump Sum Payments:
• Unused annual leave
• Unused sick leave
• Back pay
• Subject to FICA before deferral
• Cannot exceed annual IRS limits
• Severance pay or buyout distributions are not eligible to be

deferred

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Portability Enhancement Provision

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What is PEP

฀ FREE MONEY !!!! ฀ Must participate in an eligible deferred

compensation plan

฀ Allows you to vest in the employer Defined

Benefit Hybrid contributions

฀ Not a match but a redistribution of funds ฀ Faster growth of member account balance

and increased “portability”

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Contribution Allocation with PEP - Current

Years

• f Service

Your Investment in Deferred Comp 0-12 months 1% of gross pay

• r minimum
• f $25

13-24 months 2%

• r minimum
• f $25

25-36 months 3%

• r minimum
• f $25

37 + months 4%

• r minimum
• f $25

15.26%

• f your gross earnings

(does not include overtime)

NDPERS distributes into these accounts 7% Employee Account 7.12% Employer Account 1.14% Retiree Health Insurance Credit (RHIC)

8% 6.12% 9% 5.12% 10% 4.12% 11% 3.12%

65

Contribution Allocation with PEP – Effective 1/01/2020 for New Hires

Years

• f Service

Your Investment in Deferred Comp 0-12 months 1% of gross pay

• r minimum
• f $25

13-24 months 2%

• r minimum
• f $25

25-36 months 3%

• r minimum
• f $25

37 + months 4%

• r minimum
• f $25

15.26%

• f your gross earnings

(does not include overtime)

NDPERS distributes into these accounts 7% Employee Account 7.12% Employer Account

8% 6.12% 9% 5.12% 10% 4.12% 11% 4.26%

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How To Activate PEP

฀ If enrolled in an eligible deferred

compensation plan, PEP is automatic

฀ If you’re not at the maximum, consider

increasing your contribution

฀ If not enrolled, contact a Deferred Comp

provider representative to enroll

฀ Qualifying “Other 457 / 403B” Plan

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Retiree Health Insurance Credit

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Retiree Health Credit

• $5.00 for Every Year of Service Credit
• Reduced for Early Retirement
• Applies to any Health Insurance or Prescription Drug Plan

Premium

• Also applies toward NDPERS dental and NDPERS vision

premiums

• This benefit is eliminated for new hires

effective January 1, 2020

69

Online Employer Services

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NDPERS Website

71

Employer Services

• Employer Resources
• Employer Guide – wage reporting guidelines
• Forms – authorized agent changes
• Publications – kits, employer news
• Join NDPERS Plans
• New Group Information
• Meeting Request

72

Employer Guide & Wage Reporting

• Reported wages include member’s monthly gross base

earnings

• Exclusions:
• Lump sum payouts
• Overtime
• Transportation expenses
• Housing /wage differential allowances
• Performance /Longevity Bonuses may be considered if

annualized over period earned

73

Special Employment Arrangements

• Full Time Contract / Written Agreement
• Report all wages within contract
• Exclude duties outside of contract (incidental)
• Exclude Overtime
• Example: Deb works within school administrative staff

and works contracted 25 hours/week. She is also assisting as basketball coach and under a separate contract for10 hours/week.

• Reportable Wages? Full Time Contracted Wages

(Wages Earned on 25 Hours/Week)

74

Special Employment Arrangements

• No Contract / Written Agreement
• Employee works in several capacities
• Sum of hours meets eligibility guidelines
• Exclude Overtime
• Example: Employee works in several capacities for

the employer 20-40 hours each week.

• Reportable Wages? Sum of All Wages

(Excluding Overtime)

75

Special Employment Arrangements

• Seasonal / Less than 12 month Employees
• Example 1: Bus driver works for 9 months and receives

payment for hours worked over a 9 month period

• Reportable Wages? Wages each month for 9 months

(Excluding Overtime) Enter LOA for summer months

• Example 2: Bus driver works for 9 months and chose to

have payment over 12 month period

• Reportable Wages? Wages each month for 12 months

Lump sum payment reported in May…not allowed. Must report wages over entire 12 month period earned (Excluding Overtime)

76

Notice of Employment Change

• Employee Leave of Absence
• Classification Change Within Agency
• Permanent to Temporary
• Reduction in Hours
• Full-Time to Part-Time Status
• Contributing to Non-Contributing
• Important for NDPERS
• Allocate funds correctly
• Explain missing wages

77

Separation of Employment

• Special Kits:
• Retirement
• Disability Retirement
• Deferred Retirement
• Notice of Transfer
• Refund/Rollover
• Location: Resources or Home Page

78

Deferred Retirement Kit (SFN 58044)

• Employee is eligible for retirement but choosing to defer until

later date

• Employee will receive an AUTO REFUND of member account

balance but is choosing to keep account at NDPERS

• Less than $1,000
• Less than 3 years of service (not vested)

79

Notice of Transfer Kit (SFN 53706)

• Transfer of employee benefits

between participating employers

• Notice of Transfer is employer notification form
• Document unused sick leave balances
• Employees transferring are not entitled to refund / rollover

80

Refund / Rollover Kit (SFN 53879)

• Must terminate employment and be off

covered payroll for at least 31 days

• Processing takes approx. 60-90 days

from last regular paycheck

• Must have bona fide separation of employment

(no indication you will return to NDPERS employment)

• Employees returning to work with NDPERS employer

within 60 days NOT eligible

• Employee Forfeits:
• Service Credit
• Retirement / Disability Benefit
• Retiree Health Credit Benefit

81

Employees Returning To Work

• Early Retirees
• Must have retirement benefit

suspended, if returning to eligible position

• Normal Retirement (Age 65 or “Rule”)
• May waive participation in retirement plan contingent upon RTW with

new employer

• Must contact NDPERS for eligibility
• Termination of Participation (FT to PT status)
• Must update employee record from

“contributing” to “non-contributing” status

82

Employer Forms

• Employer Payment Election
• Authorization of Electronic Payment
• Memo of Understanding
• Temporary employee waivers
• Maintain documentation 6 years
• Appointment of Authorized Agent

83

Questions?

84

BREAK

LUNCH

Lunch will be on your

• wn

UNDERSTANDING PAYROLL REPORTING

Political Subdivisions & non-PeopleSoft State Employers

87

Enhancing the Member Experience

Member Self Service (MSS)

Multi-Factor Authentication

Helps protect member data and ensures accuracy of demographic

• information. Member must complete every 9 months.

Online Replies through MSS

NDPERS may respond to members through MSS after they submit a message (ticket) through MSS.

Coming soon…

Retirement Application Wizards

Members will be able to apply for retirement online – including deferral/refunds/disability/normal.

Portal Upgrade

Transition to a mobile friendly and more efficient platform in Spring 2020.

88

Employer Self Service (ESS)

Overview

Organization Maintenance

Regular tasks you should review

• Add/terminate employees
• Enroll in plans – have employees log into MSS and enroll
• Leave of absence (LOA) – must be entered in ESS
• Seasonal employees – update in ESS if an employee’s seasonality changes
• Review and update authorized agents

Payroll Headers

Think of headers as NDPERS invoices. Your organization can’t pay before the invoice (header) is ready.

• Posted status for retirement and insurance
• Valid status for 457 Deferred Compensation & Purchases

Watch for adjustment reports. 89

Submit reports & payments to NDPERS

Processing Payroll

• Make sure your system rounds to 2 places.
• Agree to pay NDPERS contribution total on manual reports.
• Upload reports to pay your payroll amounts.

Debit ACH Payments (Mandatory effective 7/1/2019)

• Ensures accuracy of your organization’s payroll.
• Print remittance report for invoice backup on what is paid.

90

Comin ing so soon i in E ESS…

Portal Upgrade

Transition to a mobile friendly and more efficient platform in Spring 2020.

91

Reporting ELIGIBLE Retirement Contributions

92

Clarifying what isNOT considered Wages or Salary

Fringe benefits such as, but not limited to:

• Overtime or Straight Overtime

(Straight time)

• Early Retirement Incentive pay
• Severance Pay
• Shift Differential
• Lump sum payouts of unused sick

leave, personal leave, vacation or annual leave

• Retention or Recruitment bonuses
• Workforce Safety and Insurance

Benefits

• Medical Insurance
• Oil Patch Add-on
• Disability insurance premiums or

benefits

• Salary received by employer in lieu of

previous employer-provided fringe benefits, ex. health care.

• Amounts contributed by the employer

to a qualified Section 125 cafeteria plan (Flex Comp), 401K, 403B, 414(H)

• r 457 plan
• Housing allowance or Transportation

expenses 93

Your report should be in Posted status

HIT the DEBIT ACH button to initiate payment overnight

How to FIX report in Review?

1. Check your details to see if any are in Review. If so, click on Review to view Errors/Warnings and to analyze the employee’s information. 2. Review your Uploaded Totals for Wages or Contributions. Your total does not match NDPERS.

94

Monthly Retirement Reports

Next Steps

Most Common Reporting Errors

1. Reporting change or variance in salary amount 2. Contributions and wages are listed as zero 3. Contributions are reported for an LOA period 4. Trying to include an adjustment in the regular report 5. Employee’s information does not exist or is incorrect 6. Uploading the report more than

• nce

7. Submitting a late report

95

How to report salary variances?

What is a salary amount change or variance? The wages increased significantly from previous report. How to FIX it? Add a comment.

1. Explain in detail the reason for the increase in wages

• What it is for,
• When it should be applied and
• How much to each reporting month?

2. Click SAVE, 3. Inform NDPERS to suppress the warning. Do not ignore the detail.

Ignoring DELETES the wages and contributions.

96

How come there is a zero?

Contributions and wages must not be null or zero

Wages or contributions were not received for the member or they are in the wrong reporting bucket.

How to FIX it?

Check your payroll records and contact NDPERS to correct.

It’s true: Member has ZERO wages this month!

• 1. Add a comment explaining this.

2. SAVE the comment. 3. Click the Ignore button. This is the only case where you would ignore a detail!

97

Any tips to report Leave of Absence (LOA)?

Contributions are reported for an LOA period. Is the member still on LOA? YES! Add notes in the comment box explaining why there are wages. Has the member returned from the LOA? YES!

• Enter the return date in ESS in the comment box.
• NDPERS will update the records, suppress the warning, and post the detail.

98

How can I provide adjustments?

Did your report already post?

Any adjustments must be reported on an adjusting report.

Examples of adjustments

• Negative adjustments
• Bonus/Retro wages
• Missed wages

99

Annualize

(spread over 12 months)

Eligible bonuses

I did not receive an ESS error message

Final Tip The wages posted without an error in the wrong month!

• Create an adjusting

report to correct the error

OR

• Contact NDPERS

100

How to correct member’s information?

Defining “Employment does not exist”

• Employee name does not match our records.

Name change due to a significant life event such as marriage or divorce.

• SSN may have been transposed.
• Employee’s Retirement and Beneficiary forms have not been received by NDPERS or
• Employee has not been set up in ESS, which creates the PERSLink ID.

How to FIX it? 1. Employee must submit the Retirement and Beneficiary forms. 2. Employer must setup employee in ESS. 3. NDPERS will post the details.

101

Has my organization uploaded the report already?

ESS error message

Employer report already exists for the combination Person/Org

What does this error mean?

• The entire report may have been uploaded twice by accident.
• An adjustment may have been included on a regular report for a member already on that

report.

How to FIX it?

Adjustment needs to be moved to a separate adjusting report.

102

We did not report on time

Reports and its payments are due the 15th of the month following the reporting month. 103

Report or detail was not posted timely Interest has been accessed Report will not post automatically NDPERS will need to post the report manually

How to write a great comment?

Real employer examples

Wages include a performance bonus of $500.00 Please annualize from June 2016-May 2017. (12 months) Member was on unpaid leave from March 27- April 17 Resulting in a lower reported wage in April 2017. May’s report should be back to the normal reporting wage. Wages include a retro wage increase of $750.00 that was not approved by the board until this month and was effective 1/1/17. Please allocate the wages. $150 each month for January – May 2017. 104

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Writing great comments Wages are high in May because they include missed wages for April 2017. Please move $3,200.00 from May to April

• 2017. Correct wage for May 2017 should be $3,625.00.

Member came in and worked for 2 days, but is still out on a maternity LOA. Member is an hourly employee and worked less hours last month.

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How does it look in ESS?

Let’s explore

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457 Deferred Compensation

Quick reminder… what is it?

• Voluntary, supplemental

retirement savings program

• Increase employees’ personal

savings for retirement

• Reduce employees current

taxable income by pre-taxing the payroll deduction

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When do employees pay the taxes?

• Generally at retirement when members withdraw money
• Taxed as ordinary income

Revisiting employee eligibility

457 Deferred Compensation

• Employees of the State of North Dakota
• Employees of participating political subdivisions
• Full- time employees either need to be full-time or
• Part-time permanent employees meeting the 20/20 rule

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Temporary employees and independent contractors are NOT eligible to participate.

How can employees enroll?

Employees can enroll, adjust, suspend the contribution anytime through:

• MSS
• Completing the Companion Plan (TIAA) Quick Enrollment (SFN 54362)
• Completing the 457 Deferred Compensation Plan Enrollment (SFN 3803) to select another

eligible provider

Selected provider will assist in completing the required forms to open an account.

IRS regulations require employees to make the deferral election in the month prior to when the wages are earned.

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Eligible Contributions

457 Deferred Compensation

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Minimum $25 per month Maximum The lesser of:

• 2019 Annual IRS Limit

$19,000/year

OR

• 100% of Taxable

Compensation

Special Eligible Contributions

457 Deferred Compensation Lump Sum Payments

• Accrued annual leave
• Unused sick leave
• Back pay

Catch-Up Contributions

• Age 50+ Annual Catch-up: $25,000 (SFN 3803)
• Regular 3-year Catch-up: $38,000 (SFN 51501 & 3803)
• 3 consecutive calendar years

(prior to year of “normal” retirement)

• One time only – NDPERS approved

Cannot exceed annual IRS limits

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Benefit Enrollment Report

Understand the importance

What the purpose of this report? Generate the report timely to capture new enrollments and changes in contribution amounts including election updates made by the employee on MSS. Pay period start date vs Pay check date

• The pay period start date reflected on the report is NOT the pay check date.
• Contributions should not be withheld prior to the date listed.

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Benefit Enrollment Report

Enhancements to make it easier

1. Differentiates regular contributions and lump sum payouts for annual/sick leave. 2. If employees that are no longer employed, withdraw their funds those no longer appear on the report.

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Your payroll cycle matters

Monthly, semi-monthly, bi-weekly

Monthly or semi-monthly payroll cycle

Enter the pay period start date effective the 1st day of the month and amount that will be deducted per pay period.

Bi-weekly payroll cycle

Enter the pay period start date correlating with the first day of the pay period (not the 1st of the month) and amount that will be deducted per pay period.

Employees paid bi-weekly but the employer reports monthly

Use the first day of the month and the combined amount withheld from each pay check. 117

Report is in “Review”

Determine the reason and fix it

Error can either be at the report level or the detail level.

• Detail level: Correct first.
• Report level: Contributions reported and NDPERS calculated contributions do not match.

Calculated amount will update automatically if changes are made to the detail.

Add comments and SAVE.

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Most common errors and fixes

457 Deferred Compensation Reporting

Deduction began too soon

The start date is always the pay period start date, not the paycheck date.

Employers reporting monthly

Withhold for pay period April 1st – 31st paid May 1st.

Employers reporting semi-monthly

Withhold for pay period April 1st – 15th paid April 15th

Employers reporting bi-weekly

Pay period cannot begin before the start date provided on the benefit enrollment report. This deduction would not be permitted for a pay period beginning in March. 119

Let’s view examples

457 Deferred Compensation Reporting

Deduction began too soon

The start date is the pay period start date.

Employers reporting monthly

Withhold $400.00 for pay period January 1st – 31st paid July 3rd. Prior to the January pay period, $200.00 should be withheld.

Employers reporting semi-monthly

Withhold $400.00 for pay period January 1st – 15th paid January 15th. Prior to the January pay period start date, $200.00 should be withheld.

Employers reporting bi-weekly

The pay period cannot begin before the start date provided on the benefit enrollment

• report. This deduction would not be permitted for a pay period beginning in December.

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Enrolling employees

Other 457/403(b) Employer must use the “Enroll in other 457/403(b)”

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Deferred Comp Report

Other 457/403(b)

• Other changes (increases/decreases) are captured when the file is uploaded or changes are made

within the template when creating the Deferred Comp Report.

• EXCEPTION

The only time the change will not be captured is if the report is already created and then the amount is changed.

How to FIX it?

Utilize the “Enroll in other 457/403(b)” option to update their contribution amount. 122

Confirm accuracy of contributions amounts

Other 457/403(b)

• Ensure the total contributions reported match the payment that will be sent

to the provider.

• If it isn’t reported correctly, then the employees’ benefit of additional funds

through the Portability Enhancement Provision (PEP) are not accounted for accurately. 123

Missed Contributions

457 Deferred Compensation

NDPERS will contact you if a contribution is not reported based on the employees’ election. How to FIX it? Follow up with your employee

• Start the deduction going forward.
• Do a one time makeup contribution for the amount missed for the current calendar year
• nly.

NDPERS needs the employee’s consent in writing, preferably email.

How was the contribution missed?

Generally, this is missed on the benefit enrollment report and not entered into payroll. 124

Group Insurance

How the Insurance Billing Works Did you know?

• Insurance billings are all driven by enrollment
• Employees have 31 days to enroll after hire or qualifying event
• Regular insurance billings are available on ESS the 2nd working day of the

month and payment is due by the 15th

What are your responsibilities?

• Billings should be reviewed and posted by the Authorized Agent. If they are

not posted by the 18th of the month, NDPERS will post them.

• Adjustments are created and posted by NDPERS (only) when an enrollment

takes place after regular billing has passed. 125

Enrollment Changes

Group Insurance

• If enrollment changes are made before the billing is posted, the billing will correct

the next time the report is opened and reloaded

• The reload process looks for any enrollment changes since the report was created or last

reload

• If changes to the billing are needed, it is best to take care of this before the billing is posted
• If an enrollment is added or changed after the billing is posted, an adjustment will be

created

• Adjustments with a positive balance are a balance due, so payment will need to be made
• Adjustments with a credit balance will apply to any unpaid report or a future report

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Enrollment Changes

Group Insurance Enrollment was added or changed after the billing is posted Adjustment will be created

• Positive balance means a

balance due

Make payment timely

• Credit balance means the

additional funds will apply to an unpaid or future report

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How to find adjustments?

Group Insurance

On Dashboard Search

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Employer Resources

Available through ESS and NDPERS website

• ESS Training Material
• Employer Guide
• Payroll Reporting Decision Tree
• Clarification of Eligible Retirement Contributions Excluding Overtime Earnings

(Memo 2017-4)

• Update in Written Agreement Definition – Eligible Retirement Contributions (Memo

2017-5)

• Payroll Reporting – Avoid Common Mistakes that can affect your Employees

Retirement (Memo: 2016-1)

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Questions?

• ESS

Message us

• Email

ndpers-info@nd.gov

• Call

(701)328-3900

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Questions?

• ESS

Message us

• Email

ndpers-info@nd.gov

• Call

(701)328-3900

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