Retirement Issues Conference Call by mJ9Vux5X


									                           Retirement Issues Conference Call
                                    July 15, 2008

Retirement Plans Brochure
The MnSCU Mandatory and Voluntary Retirement Plans overview brochure needs to be
reprinted; however there could be major changes in the retirement plans next year so only
one year’s worth of brochures should be printed at this time. Each campus is asked to e-
mail Gary Janikowski (at ) with the number of brochures
that they believe they would use for this upcoming fiscal year.

New Employee Retirement Training
MnSCU, TIAA-CREF, TRA and probably MSRS will be providing new employee
retirement training via a Webex training session as was done this past year. They are also
considering setting up some regional in-person training if there is a need for this. The
training would be a combination of an overview session and breakouts with individual
retirement funds.

Is there a need for this training, over and above Webex and what is offered at the fall HR
conference? Please e-mail Gary Janikowski and let him know if you think the need exists
for your campus employees, and how many staff might attend. Your response will help
us decide if this kind of training will be offered, and where it would be offered regionally.

TIAA-CREF Call Center
Stephanie from the TIAA-CREF Call Center will begin a series of presentations during
these conference calls, about calls received at the call center. She will most likely either
participate in calls quarterly, or twice yearly, with more in-depth topics.

Stephanie is the supervisor of the call center in Denver/West, and her counterpart is
Georgina, in North Carolina/South. Dan Mooney is our main account executive within
the call center.

TIAA-CREF receives an average of 600 calls a month, with a 96% service level (goal is
85%). Service level means that calls are answered in 30 seconds or less. The main types
of calls received are regarding withdrawals, inquiries or educational counseling. For the
next call, they will provide breakdowns of the various types of calls.

A question & answer session followed:

Q: What are the hours of the dedicated MNSCU phone line, and what happens to
MNSCU employees after those hours?

The dedicated number is 1-800-682-8969; this line is open between 9:00 – 6:00 EST.
The TIAA-CREF national phone center is open 8:00 a.m. – 10:00 p.m. EST. Calls
received to this line are re-directed to the dedicated line when it is open; after hours there
are staff at the phone center that can answer MNSCU questions. The majority of calls
received are during the hours that the dedicated line is open.

Reminders of the dedicated line go to employees monthly, and in October a system will
come online at TIAA-CREF that automatically flags a MNSCU account to be transferred
to the dedicated MnSCU line.

Minnesota Saves Plan
Renee Hill from the TIAA-CREF office in Bloomington attended the call to discuss the
Minnesota College Savings Plan, also known as the 529 Plan, which is managed for the
state of Minnesota by TIAA-CREF. Staff can save for college tax free – the money is put
into the account after taxes and grows tax free. It can be used for education at any
accredited institution. TIAA-CREF currently handles payroll deduction for the
Minnesota College Savings Plan for 200 employers in the state.

Contribution amounts are low to get started - $25 to open an account, and $15 minimum
deposits. Payroll deductions can be started, stopped, increased or decreased at any time.
If MnSCU has a policy in place regarding payroll deduction schedules, TIAA-CREF is
able to adjust to that schedule. The plan is portable; it can follow an employee to any
other institution that has payroll deduction available. Participants can also send checks
directly to their account, so others can also make deposits (family, gifts, etc.).

A webinar will be offered once a month starting in September, and flyers will be sent out
for this program. TIAA-CREF would also consider doing regional training, if there is a
need/desire for it.

Renee’s phone number is 800-877-6602, X3113 or 952-830-3113. She can also send out
information packets to those who are interested.

Missed SRP Contributions more than 60 days old
Eric from TIAA-CREF came on the line to discuss this item. He inquired about the
worksheet, asking what is considered the normal turnaround time for them.

Mary stated that any contributions that are missed on the payroll for more than 60 days,
the employer pays, plus interest. The worksheet that should be used and sent to HR is
posted on the website.

A couple of campuses contributed that their turnaround time can be anywhere from a
couple of days to a couple of weeks, depending on staff availability.

Eileen inquired if Eric’s staff had been experiencing longer turnaround times. He stated
that there was one situation that took over two months to resolve, and another situation
where a check got lost in the mail. Eric’s group is working on some tighter controls for
these types of instances.
Mary asked Eric if he could take a look at the forms and remittance voucher on the web
site to make sure it is up to date and current. Eric agreed to do so.

Eric also asked that these worksheets be sent to TIAA-CREF electronically at the
mnscuadmin e-mail address, not via fax or mail. He will also prepare a task sheet
containing processing information on these kinds of payments, which can then be posted
to the website.

TRA Actuarial Study

During the last legislative session, the Pension Commission received a request from IFO
and MSCF for their faculty to have a second chance to elect TRA. The Commission
decided that a study of TRA/IRAP elections was needed, to know what the impact to
TRA would be, before they would consider this request. This report will be done by the
Pension Commission’s actuarial firm, through TRA. MNSCU will need to provide great
quantities of information to them and this can be done mainly through BRIO reports, with
participation from the General Counsel and other staff. However, there may be some
information and historical data that will be unavailable to us, and we will need to request
it from the campuses. The campuses will need to provide information starting in August
and finishing in September, due to the January 2009 deadline for this report. An
extension for a full year was requested but not approved. Mary acknowledged the
unfortunate timing for the campuses given the start of the academic year, but there is
nothing that can be done about the deadline, and expressed appreciation for everyone’s
efforts in advance.

PERA/PRO Program
Mary discussed this plan, also known as the 43A Early Retirement Plan, where classified
employees can retire for at least 30 days and then come back in a part-time status. As of
July 1, 2008, both MSRS and PERA participants can take advantage of this plan. The
PERA people who are newly covered under this law have the same 30-day break in
service requirement as MSRS covered employees.

Annual Account Fee Assessment
Eileen gave a reminder that the $20 annual fee was assessed on June 30. This fee will not
show up on the quarterly account statements that were just mailed, but will show up on
the September printed versions, and do show up online currently.

Bonnie at Anoka Tech College asked about further training for retirement programs and
processes, especially for new campus human resources staff. There are a number of new
people who are trying to understand our retirement procedures. Mary replied that
retirement training used to be done at the Fall HR Conference, but was discontinued due
to low participation. However, if campus staff feel there is a need, it could potentially be
resurrected. Mike Freer added that this would also be good training to have for OOC
Mary requested that people send an e-mail to Cindy Schneider ( at ) stating the potential number of HR/payroll staff that
would participate in this retirement training for new staff. We would appreciate only one
response from each campus after you’ve had an opportunity to discuss this with other
staff and the CHRO. The results will be compiled, and further discussions will be held.

(Note – the registration for this training would be done through the STARS system)

Eileen introduced Bill Thorne, Director, Individual Client Services in the Bloomington
office. He stated his team of Individual Consultants are available for participation in new
hire orientations occurring in August and September if there is a need. Feel free to call
him at 952/830-3105.

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