CalPERS & CalSTRS Retirement Reporting April 5, 2017 Retirement - - PDF document

CalPERS & CalSTRS Retirement Reporting – April 5, 2017 1

CalPERS & CalSTRS Retirement Reporting

April 5, 2017 Retirement Reporting – District Financial Services San Diego County Office of Education

Disclaimer

• The statements in this presentation are for school district information

and use. This information is based on current known facts. However, CalPERS and CalSTRS updated regulations/laws will always supersede the statements presented in this workshop.

• If there is a conflict between this presentation and the law, decisions

should be based on the law and not on the information provided in this presentation.

• These materials have been prepared by the SDCOE Retirement

Reporting unit. They have not been reviewed by CalPERS & CalSTRS for approval. Therefore this material is not an official statement of CalPERS & CalSTRS.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 2

Agenda

• CalPERS
• CalPERS website
• Resources (forms & publications, guides, training available)
• my|CalPERS employer system
• CalPERS & CalSTRS
• Basics (how to verify membership, Classic vs. PEPRA, reporting history, and service credit)
• Forms (how to complete, checklists)
• File reporting
• What’s new / future items
• CalSTRS
• CalSTRS website
• Resources (forms & publications, guides, training available)
• CalSTRS Secure Employer Website (SEW)

3

CalPERS Website

• www.calpers.ca.gov
• Circular Letters
• https://www.calpers.ca.gov/page/employers/policies‐and‐procedures/circular‐letters
• Forms & Publications
• https://www.calpers.ca.gov/page/forms‐publications
• Public Agency & Schools Reference Guide
• https://www.calpers.ca.gov/docs/forms‐publications/pas‐ref‐guide.pdf
• Employer Training Classes
• https://www.calpers.ca.gov/page/education‐center/employer‐education/employer‐

training‐classes

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 3

my|CalPERS Employer System

• https://my.calpers.ca.gov/web/ept/public/systemaccess/selectLoginT

ype.html

• Log in is required
• Request by emailing: Retiremt@sdcoe.net
• Include:
• Employee id#, HR or Payroll, Name, Phone, Fax, Email
• Check my|CalPERS system for membership status as well as PEPRA

status

• my|CalPERS, Personal Information tab

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CalPERS Membership – At Appointment

• Membership at appointment
• Membership Effective Date is first working day.
• Permanent, Full‐time (40 hours per week)
• Full‐time for a temporary appointment in excess of 6 months
• Part‐time averaging at least 20 hours per week, for at least one year
• Currently a member of a CalPERS – including membership established with

another CalPERS agency (GC 20305(a)(1)

• * Important Note: If funds are on deposit with CalPERS from previous

employment – compulsory membership regardless of the type of employment less than half time (GC 20281)

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 4

CalPERS Membership ‐ Monitor

• Monitor for CalPERS Qualification (Employees hired for less than half time,

Substitute, Short‐time, Temporary, Irregular basis, etc.)

• Membership Effective Date is the first day of the month following when 1,000

hours are completed.

• Worked 1,000 hours or 125 days in a fiscal year in San Diego County School

Districts

• Compensated overtime hours are include
• Full‐time temporary position for less than 6 months Gov. Code 20305(a)(3)(B)

7

Determining Classified Membership Eligibility

• Is this position excluded from CalPERS membership?
• Student Workers
• Board Members
• Notice of Exclusion from CalPERS Membership (AESD‐139):
• Complete the form and keep in employee’s personnel file
• Are they a current member of CalPERS?
• If Yes, Membership required on date of hire
• “Once a Member, Always a Member”
• If not a current member of CalPERS then what is the time base of the

appointment?

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 5

Failure to Enroll in Membership‐GC 20283

• Timely enrollment of employees into CalPERS
• Employees must be enrolled within 90 days of qualifying for

membership

• If they are not enrolled in a timely manner it could result in School

Districts paying both member and employer contributions

• Administrative fee of $500.00 plus both employee & employer

contributions

• Submit CalPERS form‐1344
• CalPERS makes the final determination. They will send letter.
• CalPERS posts the invoice on my|CalPERS system

9

Right of CalPERS/CalSTRS Election – ES372

• Member of one system such as CalPERS and accepts a Qualifying position

into another system such as CalSTRS, or vice versa

• Employer provides the ES372 to employees within 10 days of hire
• The Election form must be submitted to the employer within 60 days of the

effective date of employment in the position requiring membership in CalPERS/CalSTRS

• If the member does not elect, all service must be reported to the default

system

• Election is irrevocable for all future service at that district, for that position
• * Form must be received by CalSTRS within 30 days.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 6

What is PEPRA?

• Public Employees’ Pension Reform Act of 2013
• Changes in the law in regards to:
• Membership
• Retirement formulas
• Employee/Employer contributions
• Pensionable compensation
• PERS Circular Letters regarding PEPRA:

200‐055‐12 dated 12/3/2012 200‐060‐12 dated 12/11/2012 200‐062‐12 dated 12/27/2012 200‐063‐12 dated 12/31/2012

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Definition of a new PEPRA member

PEPRA defines a new member as follows:

• An individual who has never been a member of any California public

retirement system prior to January 1, 2013

• A new hire who is brought into CalPERS membership for the first time
• n or after January 1, 2013, and who is not eligible for reciprocity

with another California Public Retirement System

• A member who first established CalPERS membership prior to January

1, 2013 and who is rehired by a different CalPERS employer after a break in service of greater than six months (other than schools)

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 7

Definition of a Classic Member

PEPRA defines a Classic member as follows:

• CalPERS refers to all members that do not fit within the definition of a

new member as “classic members”

• All existing CalPERS members as of December 31, 2012, will retain the

existing benefit levels for future service with the same employer

• Classic members are tested against the “new member” definition

upon each new enrollment and in some cases, may become “new members” for services under a new appointment

13

Reciprocity

• CalPERS has an agreement with many California public retirement

systems that allows a member to move from one retirement system to the other without loss of benefits. This is called “reciprocity”.

• These reciprocal agreements can allow a member to coordinate

his/her benefits between the retirement systems at the time of retirement.

• Currently, a member must enter into employment with a reciprocal

public agency within six months to be eligible

• Refer to “When you change Retirement Systems” Publication 16

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Reciprocal Self‐Certification Form (PERS‐ CASD‐801)

• Assist districts to identify if new members are classic members due to

reciprocity

• Make it a part of hiring procedure/policy to check if reciprocity applies
• Accuracy of separation & membership dates is important

Complete the following information on PERS‐CASD‐801

• Name of Most Recent Reciprocal Retirement System
• Permanent Separation Date from most recent Reciprocal Retirement

System

• First Membership Date in Prior California Public Retirement system that is

Subject to Reciprocity

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Reciprocal Self‐Certification Form (PERS‐ CASD‐801)

Employer Instructions

• Provide the “Member Reciprocal Self‐Certification Form” to all new employees or

members upon hire

• Employers must sign and record the date the Member Reciprocal Self‐

Certification Form is given to the employees

• Employers must record the date they received the completed form back from

employee (the form is due back from employees within 10 business days from the date issued)

• Reciprocal agencies are listed on the instruction sheet
• Note: It is the responsibility of the employer to retain the completed “Member

Reciprocal Self‐Certification Form” in the employee’s employment records

• Send a copy of the Reciprocal form to the county office only if it contains other

system data

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 9

CalPERS Member and Employer contributions

• Rates Bulletin
• http://www.sdcoe.net/business‐services/financial‐services/retirement‐

reporting/Documents/Retirement/RATES1617b.pdf

• For PEPRA Members
• Employee Contribution Rate: 6%
• Employer Contribution Rate: 13.888%
• For Classic Members
• Employee Contribution Rate: 7%
• Employer Contribution Rate: 13.888%

17

CalPERS Compensation Caps

• Annual pensionable compensation that is used to calculate final compensation

for Classic & New PEPRA members

• Caps will be adjusted annually based on Consumer Price Index (CPI)
• CalPERS Caps are on Calendar year basis
• Note: 2016 Classic Compensation Cap:
• Applies to employees who became a CalPERS member on or after July 1, 1996
• Section 401(a)(17) : $270,000

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 10

CalPERS PEPRA Compensation caps

• 2016 PEPRA Limits:

Cap for members with social security: $118,775

• Employee & Employer’s contributions due up to the cap limit
• Report full pay rate & all reportable wages to CalPERS
• No impact to service credit

19

CalPERS Benefit formulas

Classic

• Benefit Formula
• 2% at 55
• Maximum Benefit Factor
• 2.5% at 63
• Minimum Retirement Age
• 50 with 5 years of service

PEPRA

• Benefit Formula
• 2% at 62
• Maximum Benefit Factor
• 2.5% at 67
• Minimum Retirement Age
• 52 with 5 years of service

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 11

Three‐Year or One Year Final Compensation

• PEPRA Members
• Final compensation will be based on average of three consecutive

highest year pay rate

• Classic Members
• Final compensation is based on one highest year pay rate

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Creditable Compensation For CalPERS

Report CalPERS members payments to CalPERS only if they meet all of the following criteria:

• Pay is part of the normal monthly rate of pay or base pay
• Pay is paid in cash to similarly situated members of the same group or

class of employment

• Pay is for services rendered during normal working hours
• Pay is paid pursuant to publicly available pay schedule
• No substitute documents in lieu of publicly available salary schedules

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 12

Pensionable compensation

Pensionable Compensation for PEPRA members: Excluded:

• Bonuses
• Uniform allowances‐ Bus Drivers
• Out of Class
• One‐time payments
• Reimbursements for housing and vehicles

For Classic members:

• Refer to California Code of Regulations (CCR) section 571 for a list of special

compensation items

23

CalPERS Calendar Hours (CHRS)

• Retirement contributions calculated on regular earnings up to full

month

• Any regular earnings over full time are not reportable to CalPERS
• PeopleSoft, HCM System uses CalPERS Calendar Hours (CHRS)
• Entered annually by Retirement Reporting unit

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 13

Overtime Pay

• Only Report the overtime hours up to 40 hours/week (up to full

month service)

• Only report the “Straight‐time” rate
• Only report the “straight‐time” earnings
• GC 20635.1

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CalPERS Overtime Position

• Under San Diego County School Districts
• ‐Full time at one district & a part time at another district
• OR
• ‐Multiple Part time positions
• Enroll in CalPERS system
• CalPERS will inform us when to change one of the positions to non‐

contributory CalPERS position

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Multiple Positions (Overtime)

• Overtime for school members is the aggregate service performed by an

employee as a member for all school employers and in all categories of employment in excess of 40 hours of work per week, and for which monetary compensation is paid

• If a member concurrently renders service in two or more positions, one or

more of which is full‐time, the position with the highest pay rate or base pay shall be reported to this system

• This provision shall apply only to service rendered on or after July 1, 1994

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Inaccurate Payroll Reporting

Report payroll in the month it was earned or it may cause:

• Service credit accrual discrepancies
• Service credit inaccuracies
• Delays in member retirement processing
• Inaccurate retirement estimates
• Incorrect payment of benefits
• Loss of interest income
• A delinquency fee for late payroll reporting

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 15

The Importance of Correct & Timely Payroll

Monthly Retirement Allowance: Service Credit X Benefit Factor X Final Comp Two of the three factors used in calculating a monthly Retirement allowance are from the Payroll data submitted by the district

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PERS/STRS Full Year Service Credit

• PERS one full year service credit is earned when a member works:

‐ 10 full months of service in a fiscal year ‐ 1720 hours in a fiscal year ‐ 215 days in a fiscal year

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 16

CalPERS Terminations/Separations Only

• It is imperative that an employer report a permanent separation when an

employee retires or otherwise ends employment with your school district regardless of the reason

• All transactions within my|CalPERS, including health & retirement, rely on

the permanent separation date to be reported to determine proper benefit eligibility and cost for both employer and member

• CalPERS separation day will be a day after the last day worked
• The Retirement Reporting unit may need to add a day to the separation

day for CalPERS reporting

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my|CalPERS Certification of Unused Sick leave

• Employers are required to permanently terminate members when

they end their employment at their respective school district

• Separations
• Retirements
• Employers must certify unused sick leave on the AESD‐2 form
• Sick leave is added to the separation on my|CalPERS

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 17

Public Employees’ Pension Reform Act (PEPRA) AB340 ‐‐‐ Retirees

• Effective January 1, 2013,
• 180‐day wait period applies only where the post‐retirement

employment occurs with an employer in the same public retirement system from which the retiree retired

• There are two exclusions to this rule:
• A retiree that is appointed to a state board or commission
• A retiree who is already working as a retired annuitant prior to

January 1, 2013 does not have to stop working to serve the 180‐ day wait period

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Employment of a CalPERS Retiree

• Enroll CalPERS retiree
• Report retirees payroll to CalPERS but no contributions
• Hourly pay rate, no benefits
• Must not exceed 960 hours in a fiscal year
• Performed for a limited duration, extra help
• As of 1/1/2013 must have 180 day break in service
• PERS notifies retirees when they reach 700 hours and

another notification when they reach 960 hours

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 18

Consequences of Unlawful Employment

PERS Retiree’s Responsibility before accepting employment

• Check if it is CalPERS employer
• Inform Employer you are CalPERS Retiree
• Employment is in compliance with CalPERS law

If employment is in violation of CalPERS law:

• May be mandatory reinstatement retro active to date of unlawful

employment

• Reimburse Retirement Allowance
• Pay Member’s contributions + Interest+ Administrative expenses

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Consequences of Unlawful Employment

Employers who filled the position in violation of CalPERS law are liable for:

• Employer contribution retroactive back
• Interest
• Administrative Expenses
• GC 21220/21202/21200

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 19

CalPERS Forms

• How to complete
• See separate handout

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CalPERS Forms/Publications

Recommended Publications

• School member Benefit publication (PUB 2)
• A Guide to Your CalPERS Service Credit Purchase Options (PUB 12)
• When you Change Retirement Systems (PUB 16)
• Employment After Retirement (PUB 33)
• Pension Reform Impacts Page on CalPERS Website
• Planning Your Service Retirement (PUB 1)

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 20

CalPERS What’s New / Future Items

Retirement Appointment Reconciliation Page in my|CalPERS

• Primarily to clean up separations
• Updated the first weekend of the month
• Retirement Reporting unit will export spreadsheets and send to

school districts

• School districts will return with separation date
• Retirement Reporting unit will enter separation dates in my|CalPERS

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CalPERS

• End of CalPERS section
• Questions?

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 21

CalSTRS Website

• CalSTRS Website
• www.calstrs.com
• Employer Information Circulars
• http://www.calstrs.com/employer‐information‐circulars
• Employer and Administrative Directives
• http://www.calstrs.com/employer‐and‐administrative‐directives
• Forms
• https://forms.calstrs.com/CalSTRSOnlineFormRequestWebUI/Root

/Pages/Order.aspx

• Publications
• http://www.calstrs.com/publications‐0

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CalSTRS Secure Employer Website (SEW)

• https://sew.calstrs.com/CalSTRSSewWebUI/Root/Pages/Home.aspx
• Log in required
• Registered on CalSTRS website
• Complete and fax security forms
• Use “REAP” to look up certificated employees for membership status as well

as PEPRA status

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 22

CalSTRS Defined Benefit (DB) & Defined Benefit Supplemental(DBS)

Regular Defined Benefit (DB) plan

• Calculated retirement benefit based on age, years of service and

highest final compensation Defined Benefit Supplemental (DBS) plan

• Lump sum Refund
• OR
• Monthly Annuity Payment

43

Defined Benefit Supplemental (DBS)

Defined Benefit Supplement account receives funds from two sources:

• For 2% @60 & 2%@62
• Member’s contributions and employer’s contributions from earnings

in excess of one year are credited to members Defined Benefit Supplement account.

• For 2% @60
• Special limited‐term payments or one‐time retirement incentive

payments: Member’s contributions & employer’s contributions on these payments are credited directly to the Defined Benefit Supplement account.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 23

CalSTRS Membership ‐ Automatic

• Automatic membership at appointment.
• Membership effective date is the first working day.
• Full time contract EC 22501
• Part‐time 50% or more Contract (complete ES350) EC 22502
• Currently a member of CalSTRS from previous employment EC 22500
• * Important Note: If funds are on deposit with CalSTRS from previous

employment – compulsory membership regardless of the type of certificated employment less than half time (EC 22500)

45

CalSTRS Membership ‐ Monitor

• Cert Part time: Worked 60 Hours/10 Days in a single district in one

month, EC 22504

• First day of the month following in which 60 hours are completed.
• Certificated Subs: Worked 100 Days in a single district in a fiscal year,

EC 22503

• First day of the month following in which 100 days are completed.

Must work in that fiscal year after 100 days are completed.

• Permissive Election any time, EC 22515
• * First day of the month following the date the form is signed.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 24

Things to look for at the point of hire

• Does the position require California credential, permit or certificate?
• Are job duties CalSTRS creditable?
• What is the time base – Such as Base days, Base hours?
• Were they members of another retirement system?
• Do they have Right of CalPERS/CalSTRS Election?
• If Retired, from which system?

47

CalSTRS Membership Qualification

• Hired for less than half time and did not elect into CalSTRS

membership voluntarily

• Non members are brought into membership if and when the

following conditions are met:

• 10 Days in a single district in one month (long term, part‐time, paid contract

daily rate)

• 60 Hours in a single district in one month
• Substitutes qualify into CalSTRS membership if & when the following

conditions are met:

• 100 Days in a single district in a fiscal year

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 25

Right of CalPERS/CalSTRS Election – ES372

• Member of one system such as CalPERS and accepts a Qualifying position

into another system such as CalSTRS, or vice versa

• Employer provides the ES372 to employees within 10 days of hire
• The Election form must be submitted to the employer within 60 days of the

effective date of employment in the position requiring membership in CalPERS/CalSTRS

• If the member does not elect, all service must be reported to the default

system

• Election is irrevocable for all future service at that district, for that position
• * Form must be received by CalSTRS within 30 days.

49

CalSTRS Benefit Formulas

STRS PEPRA Benefit Formula 2% at 62:

• First hired to perform creditable activities on/after 01/01/2013

CalSTRS old 2% @ 60 Benefit Formula

• First hired to perform activities subject to coverage by DB program on
• r before December 31, 2012

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 26

STRS Members & Social Security

• STRS members do not contribute into Social Security
• Employees who do not participate in a qualified retirement plan such

as CalSTRS pay social security unless district participates in an alternate retirement plan such as FBC 3121 Plan, PARS, Apple, or CalSTRS Cash Balance

51

Creditable Compensation

Education Code Section 22119.5

• Creditable compensation regulations were last revised on 1/1/2015
• It is creditable compensation if the:
• Position is eligible to receive state apportionment and
• Position requires California credential, certificate or permit and
• Assignments meet the definition of creditable service

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 27

Creditable & Non Creditable compensation

• CalSTRS AB 2700 Guide: CalSTRS has discontinued this guide for

deciding creditable service

• Creditable compensation regulations were last revised on 1/1/2015
• Refer to Teacher’s Retirement Law
• Different payments are treated differently at times based on other

situations/conditions/criteria

53

CalSTRS PEPRA Creditable Compensation

• Report creditable compensation paid to CalSTRS 2% at 62 that meets

the definition of creditable compensation under Education Code section 22119.3 and Government Code section 7522.34

• Pay schedules may include individual employment contracts or

agreements, salary schedules or publicly available documentation

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 28

CalSTRS PEPRA Creditable Compensation

55

CalSTRS PEPRA Compensation Cap

• A limit on compensation used to calculate benefits for CalSTRS 2% at 62 PEPRA

formula

• The compensation cap is on Fiscal year basis
• Cap will be adjusted annually based on the changes in Consumer price index (CPI)
• Report the full compensation earnable and actual compensation earned
• No Employee & Employer contributions over the compensation cap
• No impact on service credit
• Compensation of members who earn more than one year of service credit in a

school year will continue to be credited to the DBS program

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 29

Coaching Assignment

• A classified assignment
• California Ed Code 44258.7(b):
• A person who holds a teaching credential in a subject or subjects other than physical

education may be authorized by action of the local governing board to coach one period per day in a competitive sport for which students receiving physical education credit, provided that he or she is a full‐time employee of a school district and has completed a minimum of 20 hours of first aid instruction appropriate for the specific sport

• §22119.5 (6)“Creditable Service”
• School activities related to, and an outgrowth of, the instructional and guidance program
• f the school when performed in addition to other activities described in this section
• Coaching assignment CalSTRS creditable only if performing active CalSTRS creditable

assignment

57

Pay rates

• STRS members can be paid on
• Monthly Basis
• Hourly Basis
• Daily Basis
• PeopleSoft, HCM system converts hourly and daily rates to annual

rates for CalSTRS by using district districts certificated calendar days (CDAYS)

• Accuracy of reporting actual rate is extremely important
• Pay rates are used to calculate service credit & retirement benefit

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 30

CalSTRS Retirement Report – F496 File

• The County’s Retirement prepares report for Sacramento office based
• n School District payroll input
• Contains Payroll data:
• Members
• Non members (e.g. Hired for less than half time in a position that

requires credential)

• Retirees
• Part time hourly, part‐time daily, Substitutes hourly, Substitutes

daily

59

CalSTRS Retirement Contribution Rates & Earnings Cap

• Members 2% at 60 (Classic Formula): 10.25%
• Members 2% at 62 (PEPRA Formula): 9.205%
• Employer Rate : 12.58%
• 2% at 62 (PEPRA) Compensation Cap
• 2016‐2017 Fiscal Year : $139,320
• Certificated employees do not contribute into social security
• Note: 2016 2% at 60 Compensation Cap:

Applies to employees who became a CalSTRS member on or after July 1, 1996 Section 401(a)(17) : $265,000

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 31

One year or Three year final compensation

• For 2% at 60 (Classic Formula)
• For members retiring with 25 years or more of credited service, final

compensation is the highest average annual compensation earnable for any 12 consecutive months

• Members with less than 25 years of credited service, final compensation is the

highest average annual compensation earnable for any 3 years or 36 months

• For 2% at 62 members (PEPRA Formula)
• Final compensation may only be averaged over at least three highest consecutive

school years

61

CalSTRS Additional Benefit

• Career Factor
• For members with 30 or more years of credited service, a career factor of

up to an additional 0.2 percent of final compensation per year of credited service is added to the age factor

• The maximum benefit is 2.4% of final compensation
• 2% at 60
• Longevity bonus, if members qualified for the longevity bonus on or before

December 31, 2010.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 32

Basic Unused Sick leave

• Full time educator’s sick leave credit is calculated by dividing the number of

accumulated unused sick leave days, as certified by the last employer, by the number of base service days, excluding school and legal holidays, required to complete the last school year:

• Accumulated Days of Unused Sick Leave /
Number of Base Days for Full‐time

Service* = Service Credit Granted

• For an administrator, add the vacation days per contract year
• For part time, the base service days are calculated in proportion to the full‐time

equivalent.

• Education Code Section 22170.5‐one day leave per pay period

63

Excess Sick Leave

• Excess Sick Leave‐ number of days in excess of basic sick leave
• Employers are required to report basic and excess separately at retirement
• Sick leave reporting should conform to standards in Ed. Code 22724
• Last employer pays present value for the excess sick leave service credit at

retirement

• Present value figure is updated annually
• EC §22718

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 33

CalSTRS Full Year Service Credit

• CalSTRS one full year service credit is earned when a member works

their FTE earnable contract => CalSTRS minimum standard

• Calculation is: Earnings divided by Pay rate divided by pay code = the

monthly service credit amount

• All 12 months are added together
• Excess of 1.0 is transferred to DBS

65

Rehire Options of CalSTRS Retiree

• Independent Contractor, if applicable
• (Subject to CalSTRS Earnings limitation)
• In a Classified position in a public school system if meets the

requirement of

• Education Code 45134(C) or 88033
• “Instructional (teacher’s) Aide” Position
• In a Certificated position – Earnings limitations & Exemptions apply.

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 34

STRS Employer Directive

• Purpose of the Employer Directive:
• Inform employer of the post retirement earnings limitations
• CalSTRS Earnings Limitation for services performed on behalf of the California

Public School System, July 1,2016– June 30, 2017: $41,732

• Legislative changes to the post retirement earnings law
• Employer’s responsibility to inform CalSTRS retirees about earnings limitations

(Section 22461)

• Employers to report post retirement earnings with correct codes to CalSTRS

(Section 22461)

• Financial implications of exceeding the earnings limit (Section 24214(g))
• Retirement incentive restrictions & Classified position restrictions

67

PEPRA (AB 340) Restrictions

• New restrictions apply to members who retire on or after January 1,

2013

• The $0 earnings limit applies to all members whose most recent

retirement is on or after January 1, 2013 regardless of their age for the first 180 days after the members most recent retirement

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 35

Exemption from the Separation from Service Retirement (180 Day Zero Dollar Limit)

• The retired member must be of normal retirement age (60) when the

compensation is earned

• The exclusion from180 day rule applies if the appointment is necessary to fill a

critically needed position.

• The governing body of the employer approves the appointment in a public

meeting

• The member did not receive any financial incentives to retire
• The members termination of service was not the cause of the need to acquire the

services of the member

• The Resolution is adopted prior to the retired member performing duties
• The exemption form# SR1897 must be received by CalSTRS prior to the retired

member performing post retirement activities

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Retired from CalPERS/CalSTRS Concurrently

• Which Rules apply:
• Government Code or Education Code
• If hired in certificated position CalSTRS Rules apply
• If hired in classified position
• Can work only as Instructional Aide
• CalPERS rules apply
• If there was a CalPERS/CalSTRS right of election, contact CalPERS/CalSTRS

for rules regarding employment after retirement

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 36

Not subject to Social Security tax if

• Position is not covered by a Section 218 Agreement

and;

• Position is covered by the same retirement system

he/she retires from.

• Medicare tax will apply if re‐hired after March 31,

1986.

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CalSTRS Reduced Workload Program (RWP)

• The RWP is designed for Defined Benefit Program members who are

nearing retirement and want to ease into retirement by working less than full time

• Eligibility Qualifications and Requirements
• Both employer and member contributions are due as if the member was

working full‐time

• The reduced workload must be at least one‐half of the time required for

full‐time employment.

• CalSTRS’ approval is required prior to participation
• GC 20905, Ed Code 22713, 45139 & 88038

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 37

Exchange or Sojourn Certificated Employee

• Ed Code 44853‐ Definition of Exchange Certificated Employee
• Ed Code 44856‐ Definition of Sojourn Certificated Employee
• Persons serving as exchange teachers or sojourn teachers from
• utside of this state are excluded from membership in the CalSTRS

plan

• Ed Code 22601

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CalSTRS Forms

• How to complete
• See Separate Handout
• STRS has discontinued processing Change of Base form E0331

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CalPERS & CalSTRS Retirement Reporting – April 5, 2017 38

CalSTRS What’s New / Future Items

• New Pension Solution Project
• Retirement Reporting unit participating in Employer Forums
• Webinars have been held for all school districts
• Training begins in the fall of 2017

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CalSTRS

• End of CalSTRS section
• Questions?

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