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. 2 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 1
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 4 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 2
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 5 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) 6 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 3
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? 8 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 4
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. 10 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 5
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 11 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 on 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) 12 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 6
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 14 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 7
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 15 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 16 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 8
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 18 CalPERS & CalSTRS Retirement Reporting – April 5, 2017 9
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