[PDF] - RETIREMENT COORDINATOR TRAINING PRESENTED BY OKLAHOMA PUBLIC PDF Document

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2019 Retirement Coordinator Training 1

RETIREMENT COORDINATOR

TRAINING

PRESENTED BY OKLAHOMA PUBLIC EMPLOYEES RETIREMENT SYSTEM

Updated Manual

PDF available on

Coordinator’s Corner.

Second page highlights

changes in 2019.

www.opers.ok.gov/coordinators‐corner

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2019 Retirement Coordinator Training 2

Presentation Overview

Recent Developments
Did You Know? Facts & Figures
Roles of the Retirement Coordinator
The Essentials: OPERS DB Plan
The Essentials: Pathfinder DC Plan
Looking Ahead
Questions & Answers

Recent Developments

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2019 Retirement Coordinator Training 3

2019 Legislation

Light session for OPERS
COLA being studied for 2020

Staffing Changes

OPERS Contact Information

n Page 3 of the Manual.

www.opers.ok.gov/staff‐directory

Don’t know who to ask? The OPERS Contact Center can help!

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2019 Retirement Coordinator Training 4

New Coordinator Orientation

First orientation was held in

April 2019 for state employers.

Local version will be held in early

2020.

Updated OPERS Forms

Withholding Preference Certificate
Post‐Retirement Employment Election
Application for Disability Retirement Benefits
Retirement Application (and Packet)

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Did you know?

Did You Know?

OPERS administers two types of retirement plans:
Defined benefit (DB) plans
Defined contribution (DC) plans
Defined benefit plans administered by OPERS:
OPERS (State & Local Government, Hazardous Duty, and Elected Officials)
Uniform Retirement System for Justices and Judges
Defined contribution plans administered by OPERS:
SoonerSave
Pathfinder

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Retirement Plans

Oklahoma Public Employees

Retirement System (OPERS)

$8.9 billion total assets
78,000 active, vested, and retired

members

285 State/County/Local Participating

Employers

$612 million paid to benefit recipients

Retirement Plans

Uniform Retirement System for Justices and Judges (URSJJ)

$311 million total assets
550 active, vested, and retired

members

$18.6 million paid to benefit

recipients

Single‐employer plan

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Retirement Plans

SoonerSave

Oklahoma State Employees Deferred Compensation Plan & Savings Incentive Plan

$1.1 billion total assets
33,000 participants
Voluntary deferred compensation plan

for State employees

$25 Employer Contribution

Retirement Plans

Oklahoma Pathfinder

$63.9 million total assets
9,000 participants
Mandatory defined compensation

plan for State employees after November 1, 2015

Employer Match
6% or 7%

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Roles of the Retirement Coordinator

Multiple Plans, Varying Responsibilities
Maintaining records
Enrolling new employees
Reporting contributions
Providing information on multiple plans
Keeping your employees informed

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2019 Retirement Coordinator Training 9

Maintaining Records

Long‐term relationship between OPERS and your employees
OPERS will frequently request missing information.
Keep employee records as accessible as possible.
Learn where your old records are hiding, do not get rid of that information

unless you can recreate it.

Enrolling New Employees

Online enrollment available at OPERS Online
Please enroll employees before first payroll report and enroll even those who

leave immediately.

Call OPERS regarding prior participation.
Please encourage members to complete beneficiary designations at

enrollment.

Members cannot withdraw, vest or retire without enrolling.

https://connect2.opers.state.ok.us

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Membership Requirements

Position is permanent, not seasonal or temporary.
Position requires at least 1,000 hours work per year (rolling 12

months after first day of employment).

The salary must be equal to or greater than the minimum wage.

State employees who first become employed by a participating employer on or after November 1, 2015, and have no prior participation in OPERS will participate in the mandatory Pathfinder defined contribution plan.

Rolling 12‐Month Calendar

April 80 hours May 85 hours June 65 hours July 95 hours August 85 hours September 85 hours October 80 hours November 60 hours December 80 hours January 60 hours February 85 hours March 85 hours April 95 hours May 95 hours June 95 hours July through June: 1,000 total hours

OPERS eligible

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Reporting Contributions

Retirement contributions begin for:
New members ‐ 1st day of month following hire date
Previous members ‐ 1st day on the job
Verify prior participation
Call OPERS. The Contact Center can verify when contributions need to begin.
Do not email Social Security numbers.

Membership Requirements

“Probationary” periods are still reportable
Periods of “initial employment” cannot be exempted from OPERS

contributions.

Delinquent service is costly and avoidable.

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Reporting & Data Integrity

Make sure to enter hours and salary correctly for each member.
Do not copy and paste without checking the hours.
This can cause problems at retirement.
OPERS may not be able to process a member’s retirement until errors

are resolved.

Employer Website Transactions

Enroll new members
Payroll reporting
Update member name
Update member address
Final Employer Certification

https://connect2.opers.state.ok.us

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Updating Member Information

Updating Name Changes
Name changes occur through the reporting of payroll.
This event marks a good time to request copies of the marriage license,

divorce decree (first page and signatures), etc. which verifies the name change.

Provide copies to OPERS for the member’s file. We will likely ask for these

documents at retirement.

Updating Member Information

Updating Addresses
You may update a member’s address on the employer website at

https://connect2.opers.state.ok.us.

Members may complete a Change of Address form and submit it to OPERS
directly. (515‐160‐10)

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Providing Information to OPERS

Serve as liaison between OPERS and your employees.
Keep employees informed on OPERS information.
Assist employees with OPERS forms.

OPERS is happy to share information and advice with Retirement Coordinators

The Essentials

OPERS – Defined Benefit Plan

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Four Possible Paths

Retire and start receiving a lifetime benefit
Vest your retirement and receive a lifetime benefit at a future date
Withdraw contributions and cancel service
Leave contributions in OPERS and pick back up when you return to a

participating employer

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Important Dates ‐ What They Mean

Last day on payroll
Last day physically on the job
Termination date
Last day insurance was paid by agency

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Your Role at Retirement

Encourage your employees to attend an OPERS Pre‐Retirement

seminar when they are within two years of eligibility.

Assist employees with the Retirement Application in order to meet

the 60‐day notice requirement.

You complete Part 8
Final Employer Certification
Online submission within 10 days after the retirement date

https://connect2.opers.state.ok.us

Before November 1, 2011

Age 62 with 6 years FTE OR 80 points (age + service) before July 1, 1992 OR 90 points (age + service) after July 1 , 1992

On or after November 1, 2011

Age 65 with 6 Years FTE OR 90 points (age + service) At least 60 years of age

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Normal Retirement Eligibility

*Elected officials and hazardous duty members may have additional and varying requirements

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2019 Retirement Coordinator Training 17 Before November 1, 2011

Age 55 with 10 years of service

On or after November 1, 2011

Age 60 with 10 years of service

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Early Retirement Eligibility

Permanent reduction based on age at retirement

*Elected officials and hazardous duty members may have additional and varying requirements

The Essentials: OPERS DB Plan

Defined Benefit Formula
Final Average Salary
Before 7/1/2013 – Highest 3 years out of the last 10 years
After 7/1/2013 – Highest 5 years out of the last 10 years
Service Credit
Members who begin on or after November 1, 2012 will be credited with full years and

months of participation.

Computation Factor (2%)

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Retirement Application Packet

Includes:

Retirement Instructions and Checklist
Retirement Application
Beneficiary Designation ‐ Retiree Death Benefits
Direct Deposit Authorization
Withholding Preference Certificate

Retirement Application

Part 8 – Retirement Coordinator Verification

Last date physically on job
Last date on payroll
Unused sick leave
Hazardous duty service dates
(DOC only)

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Retirement Options

Maximum  No Survivor Benefits
Option A  Reduced Benefit + ½ Survivor Annuity
Option B  Reduced Benefit + 100% Survivor Annuity
Option C  Reduced Benefit with 10‐year term certain

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Unused Sick Leave

May be added to member’s

service credit.

An increase in service due to USL

will result in a bill for the employer.

Timely reporting of USL is greatly

appreciated to expedite service to retiring members.

HOURS OF UNUSED SICK LEAVE MONTHS OF OPERS SERVICE CREDIT 0 – 159 160 – 319 1 320 – 479 2 480 – 639 3 640 – 799 4 800 – 959 5 960 (maximum) 6

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Unused Sick Leave

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When it adds a year:

21 years 0 months Service Credit + 6 months Unused Sick Leave 21 years 6 months Service (before rounding) 22 years Total Service Credit

When it does NOT add a year:

21 years 9 months Service Credit + 6 months Unused Sick Leave 22 years 3 months Service (before rounding) 22 years Total Service Credit Rounding eliminated for members who begin participation on or after November 1, 2012. These members will be credited with full years and months of participation.

Cost of Unused Sick Leave

Employers are only invoiced for USL if it increases the member’s

service.

Three primary cost drivers:
Final average salary of the member;
Higher salary = higher cost
Difference between the member’s current age and their retirement age at

invoicing; and,

Closer to retirement age = higher cost
Life expectancy.

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Cost of Unused Sick Leave

Rounding to an Additional Year (Pre 11/1/2012)

Example 1

Current age: 50 Retirement age 62

Example 2

Current age: 60 Retirement age 62

1 Final Average Salary $40,000.00 $60,000.00 2 Retirement Benefit Computation Factor (2.0%) x 0.02 x 0.02 3 Annual Benefit Per Year of Service $800.00 $1,200.00 ÷ 12 ÷ 12 4 Monthly Benefit Per Year of Service $66.67 $100.00 5 Reserve Factor x 50.03 x 106.08 6 Cost of Funding Additional Year of Benefits = $3,335.33 = $10,608.00

Cost of Unused Sick Leave

Additional Months of Service (Post 11/1/2012)

Example 1

Current age: 50 Retirement age 62

Example 2

Current age: 60 Retirement age 62

1 Final Average Salary $40,000.00 $60,000.00 2 Retirement Benefit Computation Factor (2.0%) x 0.02 x 0.02 3 Annual Benefit Per Year of Service $800.00 $1,200.00 ÷ 12 ÷ 12 4 Monthly Benefit Per Year of Service $66.67 $100.00 5 Reserve Factor x 50.03 x 106.08 6 Cost of Funding Additional Year of Benefits $3,335.33 $10,608.00 ÷ 12 ÷ 12 7 Cost of Funding Additional Month of Benefits $277.94 $884.00 8 Actual Number of USL Months Added x 3 x 3 9 Cost of Funding Additional Service = $833.83 = $2,652.00

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Unused Sick Leave Policy

Section 913(B)(7) of Title 74:
The total participating service credit of a member who retires or terminates

employment and elects a vested benefit shall include not to exceed 130 days

f unused sick leave accumulated subsequent to August 1, 1959, during the

member's employment with any participating employer. Such credit shall be added in terms of whole months. Twenty days of unused sick leave shall equal

ne month for purposes of participating service credit. If unused sick leave

entitles a member to an additional year of service credit, the member's employer shall reimburse the System for the cost of funding the additional service.

Please inform OPERS immediately if you have a change in your

unused sick leave policy.

Verification of Unused Sick Leave Policy
Available on Coordinators Corner

Retirees Returning to Work

One‐year “cooling‐off” period
An OPERS retiree is prohibited from returning to work with the same

employer from which he/she retired for a period of one year without waiving benefits.

No pre‐arranged employment agreements
Pre‐retirement employment agreements that permit a member to retire then

be rehired by same employer on any basis are prohibited by state law and IRS Code.

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Retirees Returning to Work

You may return to work for a non‐participating employer at any time

without affecting your retirement.

If you return to a different participating employer, you must wait at

least one month following your retirement date or your benefit will be cancelled.

Complete Post‐Retirement Employment Election form to continue benefits or

waive benefits and be eligible to retire again after three years

Continue paying contributions
Benefit increases every additional 2,076 hours worked

Retirees Returning to Work

OPERS‐Participating Employer & OPERS Retirement Benefit

Benefit subject to Social Security earnings limitation
Complete Status of Post‐Retirement Employment form
When you approach Social Security earnings limitation
Choose to continue or terminate employment

Social Security Administration (SSA) Earnings Limitation

Will not reach SSA Full Retirement Age in 2019 ‐ $17,640
Up to the point you reach SSA Full Retirement Age in 2019 ‐ $46,920
Once you reach SSA Full Retirement Age ‐ No Limit

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The Essentials

Pathfinder – Defined Contribution Plan For State Agencies Only

The Essentials: Pathfinder DC Plan

Participation eligibility
First hired by a State agency on or after November 1, 2015, no prior service in

OPERS.

Full‐time‐equivalent position.
Any position less than full‐time but more than half‐time that includes

employee benefits. This determination shall be made by the employer and exclusively relied upon by OPERS.

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The Essentials: Pathfinder DC Plan

Plan comprised of a 401(a) plan and a 457(b) plan
401(a) – Employee mandatory contributions and employer matching

contributions

457(b) – Employee additional contributions

Pathfinder Contributions 401(a) Plan 457(b) Plan

Employee mandatory (4.5%)
Employer matching (6% or 7%)
Employee voluntary above 4.5%.

The Essentials: Pathfinder DC Plan

Additional employer contributions will go to the OPERS defined benefit plan.

Person A – Receives a 6% employer match in Pathfinder OPERS required employer contribution (DB) 16.5% Pathfinder employer match (6.0)% Remainder to OPERS 10.5% Person B – Receives a 7% employer match in Pathfinder OPERS required employer contribution (DB) 16.5% Pathfinder employer match (7.0)% Remainder to OPERS 9.5%

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The Essentials: Pathfinder DC Plan

Contribution Changes

Participants can change contribution rate online or through KeyTalk
Agencies on OMES payroll:
OMES receives a file from Empower and the payroll file is updated
Agencies are not notified of contribution changes
Agencies not on OMES payroll:
Pathfinder receives a file from Empower
Pathfinder will notify the agency to update payroll

The Essentials: Pathfinder DC Plan

Vesting

Participant is 100% vested in employee contributions at all times.
Participant progressively vested in employer contributions based on

the following vesting schedule:

Vesting Period Vesting Percentage 1 Year 20% 2 Years 40% 3 Years 60% 4 Years 80% 5 Years 100%

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The Essentials: Pathfinder DC Plan

Vesting

Vesting begins as of date of hire, not participation date
Vesting calculated based on complete years
365 days elapsed = 1 complete year toward vesting
Days, not months (no rounding)
Termination is the only thing that “stops the clock,” not breaks in service
Participation no longer a matter of hours

The Essentials: Pathfinder DC Plan

Participants have investment

discretion over all contributions, matching funds, and the gains or losses on those amounts.

www.okpathfinder.com
KeyTalk at (844) 465‐7284.

59% 40% <1%

Vanguard Balanced Fund

Stocks Bonds Cash

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The Essentials: Pathfinder DC Plan

Beneficiary Designation(s)
May have separate beneficiaries for each plan
May update beneficiaries by completing a form or logging into their

account(s) through www.okpathfinder.com

The Essentials: Pathfinder DC Plan

Enrollment Process

Provide the Enrollment Guide to new employees
Enrollment form to choose contribution rate
Do not submit enrollment form to OPERS or Empower Retirement
Need only be maintained in participant’s personnel file
Once account is created by Empower, participants will receive a PIN letter

(after first payroll).

Changing agencies requires a new enrollment form
Enrollment form allows participant to change contribution rate.

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The Essentials: Pathfinder DC Plan

Leaving Employment

No forms to complete
Participants maintain control of vested deferrals and investment income
Can withdraw funds once leave employment (not required)
No additional deferrals once they leave state employment, but funds may

still be rolled into Pathfinder

Funds may be left in the plan and withdrawn at a later date

Looking Ahead

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Future Plans at OPERS

New pension administration system
Improvements to the Employer Website
Redesign and improvements to the public website

Online Resources

Coordinator’s Corner
Forms (to print or order)
Pre‐Retirement Seminar Schedule
Current and Archived Publications
Benefit Estimator

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Member Education Pre‐Retirement Seminars

Seminars are provided

in the following cities:

Ardmore
Enid
Lawton
McAlester
Oklahoma City
Tulsa
Woodward
Weatherford

Schedule is available online: www.opers.ok.gov/confidence Contact OPERS to register at (800) 733‐9008

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Annual Statements

Information as of June 30, 2019
Contains information regarding:
Accumulated contributions
Beneficiary(ies)
Retirement Coordinator contact information
Retirement eligibility requirements
Death benefits
Retirement Coordinators will receive the “dead‐end” statements.

Updating Coordinator Information

Contact Stephanie White with coordinator changes.
swhite@opers.ok.gov or (405) 858‐6768
There are two forms to complete:
Employer and Retirement Coordinator Verification
Add/delete/update employer or coordinator information
Online User Enrollment
Add/delete/update access to the employer website.
https://connect2.opers.state.ok.us

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Questions & Answers Thank you!