Authorized Agent Training 1 Agenda Retirement Insurance - - PowerPoint PPT Presentation

Authorized Agent Training

1

Agenda

• Retirement
• Insurance
• PERSLink Employer Self Service
• Accounting

2

RETIREMENT OVERVIEW

3

Defined Benefit Plan

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

“Main Plan”

4

NDPERS Website

5

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

6

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

7

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)

8

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 Wages

(Excluding Overtime)

9

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)

10

Employee Enrollment Kits/Forms

Available OnlineResources or Home Page

New Hire Kit/Forms

• Mandatory Participation

Permanent employee meeting “20/20 Rule”

• Must be enrolled in ESS immediately
• Submit beneficiary form to NDPERS

In Addition

• Employed by a participating employer
• At least 18 years of age
• Regularly funded position
• Temporary employees can participate in Defined Benefit at
• wn expense

11

Employee Enrollment Kits/Forms

Available Online Resources or Home Page

• Optional Participation
• Temporary employee or
• Part-time employee

In Addition

• 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

12

Employee Enrollment Kits/Forms

Available Online Resources or Home Page Notice of Transfer

• Transfer of employee benefits between participating

employers

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

rollover

13

Employee Enrollment Kits/Forms

Available Online Resources or Home Page Notice of 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

14

Employee Separation Kits/Forms

Available Online Resources or Home Page

Retirement

• Application must be received and on file with NDPERS 31 days before

benefit payments begin

• Unused sick leave application must be on file with NDPERS before

the last day of the month in which member leaves employment

• Not all forms are required from every member

Disability Retirement

• Process may start during employment but employment must be

terminated prior to official decision 15

Employee Separation Kits/Forms

Available Online Resources or Home Page

Refund/Rollover (SFN 53879)

• Must terminate employment and be off

covered payroll for at least 31 days

• 60-90 days processing from last regular paycheck
• No RTW within 60 days
• Must have bona fide separation of employment

(no indication you will return to NDPERS employment)

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

16

Employee Separation Kits/Forms

Available Online Resources or Home Page

Deferred Retirement (SFN 58044)

• Employee is eligible for retirement but choosing to defer until later

date

• Leave account with NDPERS
• Employee will receive an AUTO REFUND
• Less than $1,000 and
• Less than 3 years of service (not vested)

17

Employees Returning To Work

Available Online Resources or Home Page 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

18

Employer Forms

Available Online Resources or Home Page Employer Forms

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

19

SB 2045 – RHIC Updates

Expanded Option for Reimbursement Effective August 1, 2019

What after-tax insurance premiums* are eligible?

(NDPERS sponsored OR non-NDPERS sponsored)

• Health**
• Medicare – Part B, Supplement, Part D Prescription Drug

Plans**

• Dental (previously NDPERS only)
• Vision (previously NDPERS only)
• Long-Term Care (previously NDPERS only)

*/** reference next slide

20

SB 2045 – RHIC Updates

Expanded Option for Reimbursement Effective August 1, 2019

What premiums are not eligible?

• Life Insurance
• Supplemental Coverage Plans (Accident, Disability,

Cancer, etc)

*If you have an employer-sponsored health plan, premiums must be after-tax deduction from your pay check. (Pre-tax premiums are ineligible.) **Medical sharing groups are not engaged in the business of insurance and are not regulated. Therefore, these groups are excluded as eligible insurance plans.

21

Retiree Health Credit

These did not change

• $5.00 for Every Year of Service Credit
• Reduced for Early Retirement

22

Actuarial Investment Return Assumption

Lowered from the current 7.75% to 7.50%*

Based on:

• Actuarial recommendation – Gabriel Roeder Smith & Co. (GRS)
• Other public sector plans
• NDPERS historical returns

*Effective date is January 1, 2020

Impacts interest rate on:

• Member Retirement Accounts
• Service Purchase with Payment Plans

23

Interest Rate

Member Retirement Account

Under 71-02-01-01 (e), the interest on a member account is

• ne-half of one percent less than the actuarial interest assumption.

This will lower the current interest rate of 7.25% to 7.00% on all member accounts.

24 Current New Actuarial Interest Assumption (Investment Return) 7.75% 7.50% Minus one-half of one percent Administrative Code 71-02-01-01 (e) .50% .50% NDPERS Interest Rate Payment on Retirement Accounts 7.25% 7.00%

Interest Rate

Service Purchase with Payment Plans (Only)

• Under 71-02-03-02.2, if a purchase payment installment method

is used, simple interest at the actuarial rate of return must accrue monthly on the unpaid balance.

• This will lower the simple interest cost on all open active

purchase accounts prospectively from 7.75% to 7.50% .

25

SB 2046 – Retiree Health Insurance Credit

New Hires Effective January 1, 2020

• Discontinues the Retiree Health Insurance Credit (RHIC) for

new employees Plans Impacted

• Defined Benefit (Main) Hybrid Retirement Plan
• Defined Contributions Plan
• Transfers the 1.14% RHIC employer contribution to the Defined

Benefit and Defined Contribution retirement plans prospectively

Plans NOT Impacted

• Public Safety Plan
• Judges Plan
• Highway Patrol Plan

26

Current Defined Benefit Hybrid (DB) Plan

How Employee Retirement Contributions are Allocated

27 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

Defined Benefit Hybrid (DB) Plan

2020 Tier - For new hires on or after January 1, 2020

28 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)

0.00%

Retiree Health Credit

SB 2047 – Reduction of Benefit Multiplier

New Hires Effective January 1, 2020

• Reduces the retirement benefit multiplier for new employees
• Plans Affected:
• Main Defined Benefit Plan
• Public Safety Plan
• Plans NOT Affected:
• Judges Plan
• Highway Patrol Plan

29

Defined Benefit Hybrid (DB or Main) Plan

Current Retirement Benefit Formula

• Final Average Salary (FAS)
• Years of Service (YOS)

One month of service for each contribution

• Benefit Multiplier

2.00%

30

FAS x YOS x 2% = Single Life Monthly Benefit

DB Retirement Benefit Formula

2020 Tier - For new hires on or after January 1, 2020

• Final Average Salary (FAS)
• Years of Service (YOS)

One month of service for each contribution

• Benefit Multiplier

1.75%

31

FAS x YOS x 1.75% = Single Life Monthly Benefit

DB Retirement Benefit Formula

Final Average Salary (FAS) Calculation Method

What is FAS?

A factor used to determine your monthly retirement benefit (pension)

Currently (until December 31, 2019) The average of your highest 36 salaries during the last 180 months worked Upcoming (after January 1, 2020) The higher of

• average of your highest 36 salaries calculated on December 31, 2019
• or the average of the three highest 12-month consecutive periods

32

FAS x Years of Service x Multiplier = Monthly Retirement Benefit

Reason for change in the FAS calculation method

Payroll Cycles Matter

Weekly / Bi-weekly Seasonal

• Months without earnings

are excluded

33

• Bi-weekly schedule has two

months/year with three paychecks

Salary fluctuation resulting from different pay schedules are smoothed with the upcoming FAS calculation method effective 1/1/2020

What’s the impact to new retirees?

After December 31, 2019

Members in these NDPERS Retirement Plans:

• Defined Benefit (Main)
• Public Safety
• Judges
• Highway Patrol
• Ensures greater consistency in benefits being paid to all

retirees

• Members retiring after December 31, 2019 are

“grandfathered”

FAS will not be lower than the FAS entitled to as of 12.31.2019 34

Impact to Membership

Examples

35

Likely Not Impacted Likely Impacted Members that retire or terminate employment prior to December 31, 2019 as FAS is not expected to change Members terminating or retiring after December 31, 2019 but FAS will not be lower than the FAS entitled to as of December 31, 2019 Members paid monthly or semimonthly as FAS is not expected to change Members who turn in weekly timesheets (paid on a weekly or bi- weekly basis) but FAS will not be lower than the FAS entitled to as of December 31, 2019 Temporary or seasonal members (even if paid monthly or semimonthly) as FAS calculation may be higher

Summary – FAS Change

• Compares new FAS calculation to FAS calculated under old

methodology as of December 31, 2019, whichever is higher

• Limits the impact to members retiring in the short-term –

“grandfathering” members

• Prevents a decrease in the FAS and monthly accrued benefit
• Member Self Service (MSS) will allow members to compare

retiring now to delayed retirement date FAS – this fall

36

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.

37

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)

38

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
• r .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

39

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
• r .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

40

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

4 1

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

42

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

43

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)

44

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 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

45

Can I Invest MORE in My DB Plan?

YES!

Purchasing service may: Vest you sooner

• 1. Increase your lifetime benefit
• 2. Increase your RHIC benefit
• 3. Get you to “Rule” sooner

46

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)

4 7

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

48

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.

49

Deferred Compensation Plan

50

What is Deferred Compensation? FREE MONEY!!

• 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

51

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

52

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/monthly minimum
• r your own designated amount

53

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

54

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

55

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

56

Portability Enhancement Provision

57

What is PEP

฀

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”

58

Contribution Allocation with PEP

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%

59

How To Activate PEP

฀ If you are enrolled in an eligible deferred

compensation plan, PEP is automatic

฀ If you are not at the maximum, consider

increasing your contribution

฀ If you are not enrolled, contact a

Deferred Comp provider representative to enroll

฀ Qualifying “Other 457 / 403B” Plan

60

Your Retirement Counselor

Retirees are assigned to counselors by last name

• A-K

Mary Ann Welder

• L-Z

Marcy Aldinger

• COMING SOON!  Daymon Mills

61

NDPERS Home Page

62

PERSLink Member Self Service

Online Portal Mobile App

63

• View/update benefit plans & personal

profile

• Retirement benefit estimates
• Service purchase estimates

Member Self Service (MSS) Login

64

Step 1

65

Step 2

Benefit Estimates through MSS

Step 3: Enter Retirement Date Enter Annual Percent Salary Increase (optional)

66

67

Step 4: Add Pending Service Purchases

Step 5: Results

68

This example may not be interpreted as a personal calculation

Questions?

69

BREAK

Member Services

Julie Nagel Peggy Vaagen Daymon Mills 71

Benefit Enrollment Specialists

Darby Henke Kim Humann Geri Frohlich 72

Health Insurance Plan

Sanford Health Plan

73

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

74

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

75

Affordability: ACA Requirement

• Coverage must be affordable for employees that

meet ACA “full-time” employee definition

• Cannot require employee to pay more than ACA

threshold of household income towards single premium:

• For current biennium (2019-2021):
• $98.88/month employee share
• Employer can choose to pay all or portion of employee

share

76

Dependents

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

Birthday

77

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 – October 14-November 1

฀

Temporary Employee Special Enrollment Season

฀

Coverage effective January 1

฀

Must complete application form with employer verification in Part F 78

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

• OMB will provide a list of your employees to measure
• Special enrollment window:
• November 18 through December 6, 2019
• Coverage effective January 1, 2020

79

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

80

Active Health Insurance

• Dakota Plan
• 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
• High Deductible Health Plan (HDHP) for permanent State Employees only.
• Includes a Health Savings Account (HSA)

81

Health Savings Account (HSA)

82

• What is a HSA?
• HSA helps cover medical expenses until the annual deductible and out-of-pocket

maximum are met. The employer will contribute to the HSA for each month an employee participates as follows:

• $88.34* per month ER contribution for single
• $213.76* per month ER contribution for family
• What are the limits?
• The IRS establishes annual limits of total contributions (both employee and employer

paid) that can be contributed to an HSA per calendar year. For 2019, the limits are:

• Single HDHP Coverage: $3,500
• Family HDHP Coverage: $7,000
• Age 55+Catchup: $1,000
• How often are contributions sent?
• The employer contributions are sent to the HSA vendor on a delayed schedule. For

example, the June coverage month contributions will be posted to your HSA account by the end of July.

• The employee contributions are sent to the HSA vendor within 3 business days of the

deduction being made from payroll.

• Are the employee contributions pre- or post-tax?
• Pre-tax payroll deduction is permitted if the employer allows
• May be made via SFN 60036 or via MSS
• Employee can submit post-tax contributions directly to the HSA vendor

Employer Guide

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

use

83

Forms

• New Hire Kit
• Health Insurance Application or

Change SFN 60036

• Acknowledgement of or Decline

Offer of Health Insurance Coverage SFN 60711

84

Forms

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

Coverage (COBRA) SFN 14120

85

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.

86

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 and promote the NDPERS Tobacco Cessation Program

• Develop & submit Wellness Program (Wellness

Discount Application)

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

87

Employer Based Wellness Program

• Total of 5 points needed
• Communication materials and promotion of

NDPERS Tobacco Cessation program & Wellness workshop attendance = 1 point (required)

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

88

Life Insurance Plan

Voya Financial

89

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

90

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 employees must pay the full

premium (no employer payment)

91

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 OR for dependent coverage requests

• Transfers from one covered employer to another

covered employer

• Not eligible to change coverage levels

92

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.

93

Employer Guide

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

use

94

Forms

• New Hire Kit
• Life Insurance Enrollment/Change

SFN 53803

• Life Insurance Designation of

Beneficiary SFN 53855

• Evidence of Insurability

95

Forms

฀ Notice of Transfer SFN 53706 ฀ Terminating Employees:

– Receive a packet from Voya with Portability & Conversion options

96

Dental Insurance Plan

Delta Dental

97

Eligibility

• Permanent State 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

98

Enrollment

• 31 days from hire date
• During Annual Enrollment period for the next

year

• Loss of coverage in an employer sponsored

dental plan

• Marriage, Birth, Adoption or Legal

Guardianship

99

Premium Information

The following premiums are in effect through December 31, 2020: Monthly Premium Employee only $ 38.64

• Empl. & spouse

$ 74.58

• Empl. & child(ren)

$ 86.58 Family (employee $123.30 spouse, children)

100

Premium Pre-tax

• You can pre-tax your premium deduction.

Please note, if you pretax your insurance premium, you may not change or drop coverage during the plan year unless you experience an IRS Qualified Change of Status

• New Policy: An individual enrolled in the

plan will be required to remain in the plan during the calendar year unless they terminate employment or elect to discontinue during Annual Enrollment for the next plan year

101

Employer Guide

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

use

102

Forms

• New Hire Kit
• Dental/Vision Enrollment Change

Form SFN 58792

103

Forms

฀ Notice of Transfer SFN 53706 ฀ Continuation of Group Insurance

Coverage SFN 14120

104

Vision Insurance Plan

Superior Vision

105

Eligibility

• Permanent State 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

106

Enrollment

• 31 days from hire date
• During Annual Enrollment period for the next

year

• Loss of coverage in an employer sponsored

vision plan

• Marriage, Birth, Adoption or Legal

Guardianship

107

Premium Information

The following premiums are in effect through December 31, 2021: Monthly Premium

• Employee only

$6.57

• Empl. & spouse

$13.15

• Empl. & child(ren)

$11.98

• Family

$18.55

108

Premium Pre-tax

• You can pre-tax your premium deduction.

Please note, if you pretax your insurance premium, you may not change or drop coverage during the plan year unless you experience an IRS Qualified Change of Status

• New Policy: An individual enrolled in the plan

will be required to remain in the plan during the calendar year unless they terminate employment or elect to discontinue during Annual Enrollment for the next plan year

109

Employer Guide

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

use

110

Forms

• New Hire Kit
• Dental/Vision Enrollment Change

Form SFN 58792

111

Forms

฀ Notice of Transfer SFN 53706 ฀ Continuation of Group Insurance

Coverage SFN 14120

112

Employee Assistance Program (EAP)

113

Employee Eligibility

Permanent State 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

114

Dependent Eligibility

• Legally married spouse
• Children under the age of 26

115

Enrollment

• Enrolled through MSS or through

NDPERS staff

• Premium is paid by employer

116

Program Description

• Provide special assistance in guidance & counseling

to determine appropriate diagnosis/treatment to employees and eligible dependents

• Educational seminars and brochures

117

EAP Providers

• Employer determines who EAP provider is for agency
• Current EAP Providers:
• NexGen through eni
• St. Alexius/Heartview
• Village Family
• Live Well Solutions
• Employees can visit NDPERS website or MSS to

view their EAP provider

118

Employer Guide

• Available on Website
• General information on plan

119

FlexComp Plan

ASIFlex

120

Eligibility

• Permanent State 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
• Excludes Higher Education employees

121

Enrollment

• 31 days from hire date
• During Annual Enrollment Season
• Need to enroll annually
• An IRS Qualified Change in Status

122

Premium Conversion

• Allows you to pay premiums for various insurances

through pre-tax payroll deductions

• Automatically pretax first $50,000 of Employee

Supplemental Life Insurance premium

123

Medical Spending Account

• Allows you to redirect a portion of your

salary to pay on a pretax basis for medical expenses not covered by insurance

• $2,650 limit per year
• Over-the-Counter medications NOT allowed

unless you have a prescription

• Cannot have a Medical Spending Account if

you are enrolled in the High Deductible Health Plan

124

Dependent Care Reimbursement Account

• Allows you to redirect a portion of your

salary to pay for your dependent care expenses on a pretax basis

• $5,000 maximum (for a married couple filing

a joint tax return or a single parent)

• $2,500 maximum (for a married couple filing

separate tax returns)

125

IRS Regulations

• Use It or Lose It!
• Grace Period
• Changes in Participation
• Marriage
• Birth/adoption
• Changes in employment status
• Separate Accounts

126

Claim Processing

• ASIFlex is 3rd Party Administrator
• Many options for Claims Reimbursement:
• Online submission
• Paper submission (mail or fax)
• Mobile App
• Auto reimbursement for NDPERS health claims

(medical spending account only)

• Debit card (medical spending account only)

127

Employer Guide

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

128

Forms

• New Hire Kit
• FlexComp Enrollment SFN 53851

129

Forms

฀ Notice of Transfer SFN 53706 ฀ Continuation of Coverage in a Medical

Spending Account (COBRA) SFN 53512

130

Questions?

131

Email ndpers-info@nd.gov Call (701)328-3900

LUNCH

Lunch will be on your

• wn

UNDERSTANDING PAYROLL REPORTING

State Employers on PeopleSoft [Central Payroll] and Higher Ed

133

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/nor mal.

Portal Upgrade

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

134

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

Watch for adjustment reports.

Coming soon…

PeopleSoft Outbound File

• January 2020 implementation goal

for the state agencies.

Portal Upgrade

• Transition to a mobile friendly and

more efficient platform in Spring 2020. 135

Let’s remember

136

Authorized Agent Training

Annually (August) at the Capitol

Temporary employees

NOT automatically updated like permanent employees

Reporting ELIGIBLE Retirement Contributions

137

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 138

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.

139

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

140

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.

141

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!

142

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.

143

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

144

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

145

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.

146

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. 147

More inspiration

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.

148

How does it look in ESS?

Let’s explore

149

150

151

152

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

153

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

154

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.

155

Eligible Contributions

457 Deferred Compensation

156

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

157

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.

158

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.

159

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. 160

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.

161

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 or for Higher Ed paid April 30th.

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. 162

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 or for Higher Ed

paid January 30th 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.

163

Enrolling employees

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

164

Deferred Comp Report

Other 457/403(b)

• Other changes (increases/decreases) are captured when the file is uploaded
• r 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. 165

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. 166

Missed Contributions

457 Deferred Compensation

NDPERS will contact you if a contribution is not reported based

• n 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 only.

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. 167

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 are

posted for Higher Ed.

• Central Payroll billings are posted after supplemental payroll.

What are your responsibilities?

Higher Ed Employers Review premium discrepancy reports and adjustment reports for necessary corrections. State Employers on PeopleSoft Insurance statement with any discrepancies that need to be corrected will need your review after NDPERS sends it to you.

168

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
• r a future report

169

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

170

How to find adjustments?

Group Insurance

On Dashboard Search

171

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)

172

Questions?

• ESS

Message us

• Email

ndpers-info@nd.gov

• Call

(701)328-3900

173