RETIREMENT COORDINATOR TRAINING PRESENTED BY OKLAHOMA PUBLIC - PDF document

2019 Retirement Coordinator Training 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 1

2019 Retirement Coordinator Training 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 2

2019 Retirement Coordinator Training 2019 Legislation • Light session for OPERS • COLA being studied for 2020 Staffing Changes OPERS Contact Information on Page 3 of the Manual. www.opers.ok.gov/staff‐directory Don’t know who to ask? The OPERS Contact Center can help! 3

2019 Retirement Coordinator Training 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) 4

2019 Retirement Coordinator Training 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 5

2019 Retirement Coordinator Training Retirement Plans • Oklahoma Public Employees • $8.9 billion total assets Retirement System (OPERS) • 78,000 active, vested, and retired members • 285 State/County/Local Participating Employers • $612 million paid to benefit recipients Retirement Plans • $311 million total assets Uniform Retirement System for Justices and Judges (URSJJ) • 550 active, vested, and retired members • $18.6 million paid to benefit recipients • Single‐employer plan 6

2019 Retirement Coordinator Training Retirement Plans • $1.1 billion total assets SoonerSave • 33,000 participants Oklahoma State Employees Deferred Compensation Plan & Savings Incentive Plan • Voluntary deferred compensation plan for State employees • $25 Employer Contribution Retirement Plans • $63.9 million total assets Oklahoma Pathfinder • 9,000 participants • Mandatory defined compensation plan for State employees after November 1, 2015 • Employer Match • 6% or 7% 7

2019 Retirement Coordinator Training Roles of the Retirement Coordinator 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 8

2019 Retirement Coordinator Training 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 9

2019 Retirement Coordinator Training 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 January 60 hours May 85 hours February 85 hours June 65 hours March 85 hours July 95 hours April 95 hours August 85 hours May 95 hours September 85 hours June 95 hours October 80 hours November 60 hours July through June: 1,000 total hours December 80 hours OPERS eligible 24 10

2019 Retirement Coordinator Training 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. 11

2019 Retirement Coordinator Training 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 12

2019 Retirement Coordinator Training 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) 13

2019 Retirement Coordinator Training 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 14

2019 Retirement Coordinator Training 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 34 Important Dates ‐ What They Mean • Last day on payroll • Last day physically on the job • Termination date • Last day insurance was paid by agency 35 15

2019 Retirement Coordinator Training 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 Normal Retirement Eligibility Before November 1, 2011 On or after November 1, 2011 Age 62 with 6 years FTE Age 65 with 6 Years FTE OR OR 80 points (age + service) 90 points (age + service) before July 1, 1992 At least 60 years of age OR 90 points (age + service) after July 1 , 1992 *Elected officials and hazardous duty members may have additional and varying requirements 37 16

2019 Retirement Coordinator Training Early Retirement Eligibility Before November 1, 2011 On or after November 1, 2011 Age 55 with 10 years of service Age 60 with 10 years of service Permanent reduction based on age at retirement *Elected officials and hazardous duty members may have additional and varying requirements 38 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%) 17

2019 Retirement Coordinator Training 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) 41 18