Vesting Schedule

Nebraska Public Employees Retirement Systems 402-471-2053 or 800-245-5712, Fax: 402-471-9493 NPERS www.npers.ne.gov 2008 School Employer Workshops Jason Bailey NPERS Accounting Specialist Cheryl Mueller NPERS Training Specialist Jan Fox NPERS Education Services Manager Agenda Compliance   Legislative Update Audit Testing Newsletter Compensation Reporting Details Optional PIONEER    Retirement 101  Web Site www.npers.ne.gov •PERB Information •Investment Council •Legislative Information •Plan Information •Member Information •Publications •Forms •Seminar Schedules •Benefit Estimator Web Site Online Account Access Review compensation Review service Create Your Account Email address Social Security # Retirement # Legislative Update LB 1147 – Effective 7/18/08  COLA technical changes – won’t affect value of calculations Reporting Compensation Reporting Details Compensation Gross Wages or Salaries Payable For Personal Services Performed Includes:  Overtime pay  Member retirement contributions  Wages ordered paid in legal proceedings  Amounts contributed to: • • • §125 - Cafeteria Plans §403(b) - TSAs §457 Does Not Include:  Unused leave converted to cash  Insurance premiums as cash  Fringe benefits  Expense reimbursements  Amounts fraudulently obtained  Bonuses (service not rendered) • • • • early retirement inducements cash awards severance pay retirement separation payments 7% Salary Cap     Based on salary paid in plan year 7/1 – 6/30 Salary paid by same employer Wages over 7% increase capped if no exemption reported Only affects member during 60 months before retirement 7% Salary Cap (cont.) Exemption Codes:  Exemption A – substantial change in employment position Change in position Extra duty Increase in number of days worked 7% Salary Cap (cont.) Exemption B – compensation > 7% due to collective-bargaining agreement w/ employer and recognized collectivebargaining unit or category of school employee Increase due to collective bargaining unit agreement, including movement on salary schedule Equal increase within category of employee 7% Salary Cap (cont.)  Exemption C – excess compensation occurred due to district-wide permanent benefit change  Only reason to use C 7% Salary Cap (cont.) Lump Sum Payments (Example: June, July, & August paid in June)  NPERS does not physically move money to correct months  Always provide monthly breakdown to NPERS 7% Salary Cap (cont.)  Could increase that year’s wages and decrease next year’s wages  Could be on 7% list for this reason only  Do not report an exemption  Send note to NPERS: Example: “Due to lump sum payment in June 2006, not attributed to correct months, employee did not have over 7% increase.” 7% Salary Cap (cont.) Ways to keep members off 7% list  Wait and report wages in correct months  Complete adjustments or send forms to move wages to correct months  In example (previous slide), adjustments couldn’t be done until after August report posted Reporting New Employer Contacts      Send new Employer Contact Form Update online contact information Read Manual for Employer Contacts Call NPERS for assistance NPERS compatible with Internet Explorer only Reporting (cont.) Must Wait Overnight After File Upload before editing report  If not, it will stop the process  Must delete and start over  If report is suspended then fixed, status won’t change until NPERS accepts report  Confirm your report after correcting Reporting (cont.) Confirmation – Online Reporting  Must complete confirmation process  Click on “Confirm This Report”  “Report Confirmed” is correct completion page -- Reporting (cont.) Confirmation  Is due 10th of the following month  Use next business day if 10th falls on weekend or holiday  Email us prior to due date if late confirmation – we can work with you!  Report is not “posted” until NPERS completes the process Reporting (cont.) Late Fees -- Penalties  Required by Statute  Late interest is employer’s responsibility  May request waiver in writing  Additional penalty - .038% of report total for each day late Reporting (cont.) Erroneous Data Report  Emails sent about missing or incorrect demographic information  Included are Gender/ Date of Birth/ Citizenship Status Reporting (cont.) Make-up Agreements  Use these fields only with specific instructions from NPERS  MkUpEE (Make-up Employee)  MkUpER (Make-up Employer)  MkUpInt (Make-up Interest)  InstlAmt (Installment Amount) Reporting (cont.) Adjustment Report Form  All adjustments, including web reports  Send documentation of all adjustments  Needed for future reference     Provide accurate explanation Two year limit – member refund One year limit – employer refund Employer responsible for any interest Details Citizenship Status  Report as “Y” if U.S. citizen or permanent resident  If permanent resident, send valid documentation (front and back copy of permanent resident card) Details (cont.) Eligibility         15 or more hours/week – average At one or more schools Permanent substitutes Citizen or permanent resident Mandatory participation No age requirement Review positions annually Helps eliminate make-ups Details (cont.) Employer Contact Information        Keep forms current with NPERS Must include online contact New Employees Beneficiary Designation Form Application for Vesting Credit Member Handbook Forms, Handbooks, Manuals Most current at: www.npers.ne.gov Employees Age 701/2 Or Over Notify NPERS upon termination Details (cont.) Hours Zero hours – summer months Report only those “physically” working Report used sick and vacation hours Report extra duty hours -- includes coaching  Be consistent in reporting extra hours with extra pay     Details (cont.) Non-Contributing Member Form  Accuracy is critical – term dates, hours, last contributions  Impacts retirement benefit calculation  7% salary cap section added  Call if you need help Non-Contributing School Member Form -- Example #1 Last day worked May 23, Receiving paychecks through August Non-Contributing School Member Form -- Example #2 Work summer school thru July 28, Receive paychecks thru August Non-Contributing School Member Form -- Example #3 Last day worked May 28, Paid off contract in lump sum in May Details (cont.) Contribution Rates  Currently 7.28%  101% employer match Details (cont.) Consider ACH     No lost checks Web reporters – nothing to mail Matches report total Deducted from your account 3-4 working days after NPERS processes Details (cont.) PIONEER Is Being Converted to NPRIS  New feature – You can attach “notes” to reports Contact NPERS 800-245-5712 or 402- 471-2053 Fax: 402- 471-9493 Jason -- 471- 9497 jbailey@npers.ne.gov Linda -- 471- 6098 ldavis@npers.ne.gov www.npers.ne.gov Nebraska Public Employees Retirement Systems 402-471-2053 or 800-245-5712, Fax: 402-471-9493 NPERS www.npers.ne.gov