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					Covered Employer
Training Program

    Module Three
The Reporting Process
Active Member Contributions

 Your employees who are South Carolina Retirement
    System (SCRS), Police Officers Retirement System
    (PORS), and State Optional Retirement Program (State
    ORP) participants contribute 6.5 percent of gross pay
    into their respective retirement plan.




Follow along in your Covered Employer Procedures Manual!   Page 21
 Employer Contributions
                                                                         Employer                  Employer      Incidental      Accidental
                                                                        Retirement     Insurance    Rate plus   Death Benefit      Death
                         Type of Employer                              Contribution    Surcharge   Surcharge    Contribution    Contribution


     State Agencies, Public School Districts, Institutions of Higher
                               Education

 SCRS                                                                     9.24%          3.90%       13.14%         0.15%           N/A

 PORS - Class II                                                          11.13%         3.90%       15.03%         0.20%          0.20%

                                                                       4.24%(+5% to
 State ORP                                                             members acct)     3.90%       8.14%          0.15%           N/A


        Political Subdivisions Not Covered Under Retiree Insurance
                                 Surcharge

 SCRS                                                                     9.24%           N/A        9.24%          0.15%           N/A

 PORS - Class I                                                           7.80%           N/A        7.80%          0.20%          0.20%

 PORS - Class II                                                          11.13%          N/A        11.13%         0.20%          0.20%



  Political Subdivisions Covered Under Retiree Insurance Surcharge

 SCRS                                                                     9.24%          3.90%       13.14%         0.15%           N/A

 PORS - Class II                                                          11.13%         3.90%       15.03%         0.20%          0.20%


Effective July 1, 2011, the SCRS rate will increase by 0.145 percent and the PORS rate will increase by
0.2325 percent. Effective July 1, 2012, the SCRS and PORS rate will increase another 0.145 percent
and 0.2325 percent, respectively.
    Page 22
  Contribution Rate Changes
   If an increase in the employer contribution rate occurs,
    apply the increased rate based on the date the money
    was paid.
   If an increase in the employee contribution rate occurs,
    apply the increased rate to when the money was earned.




Page 23
  Contribution Requirements

   Salary or wages
             Contributions due on gross pay, before taxes

   Wages paid while on sick or annual leave

   Unused annual/general leave
             Contributions are deductible on up to and including 45 days
              of termination pay for unused annual/general leave




Page 24
  Contribution Requirements

   Overtime and compensatory time

   Contribution limit:
             Applies to employees who became members after
              December 31, 1995.
             The limitation for calendar years 2009 and 2010 is
              $245,000.




Page 24
  Wages Not Subject to Contributions
   Payments out of the regular salary base
   One-time bonus and incentive-type payments
   Retirement incentive payments
   Long-term disability benefits
   Payments for unused sick leave
   Payments for more than 45 days of unused annual leave
    at termination
   Payments for unused annual leave while the member
    remains in service



Page 25
  Electronic Employer Services (EES)
   EES is an efficient, secure on-line tool to assist you in
      your contribution reporting. The Retirement Systems
      is continually adding features and improving EES
      functionality, so be sure to check for updates.
      Currently employers can:
             Prepare monthly and quarterly deposit forms
             Upload quarterly report data
             Prepare and submit EES-ER quarterly reports
             View transaction errors
             Key retiree return to work dates
             Upload furlough supplements

Page 26
  Electronic Employer Services (EES)

   Plans for the immediate future include the ability to:
      Submit certification of final retirement information
       (data currently provided on Form 6202)
      Retrieve Retirement Systems data regarding your
       employees.




Page 26
  Obtaining Access to EES
   Complete an Electronic Employer Services (EES) Employer
    Confidentiality Agreement (Form 6503), an Electronic
    Employer Services (EES) Authorizing Contact
    Designation/Agreement (Form 6504), and an Electronic
    Employer Services (EES) Designated Agent Confidentiality
    Agreement (Form 6505) and return them to our office.
   A user identification (USERID) and a personal
    identification number (PIN) will be provided for access to
    this secure website.




Page 26
 Remittances
 Does not pertain to those on Comptroller General’s (CG) payroll
 system

  Employers must remit employer and employee contributions to the
      Retirement Systems on a monthly basis

  You can send a paper check, wire the money, or have it debited
      from your account. Please contact Patricia Miller at 803-737-6904
      for more information about wires and debits. The Authorization
      Agreement for Automatic Debits (Form 1226) will be required for
      automatic debits.

  Remittances must be in our office on the due date (not
      postmarked on the due date).



Page 27
  Due Date Calendar
  Does not pertain to those on CG’s payroll system


   Every July, an Employer Update is sent to all covered
      employers, which includes the Due Date Calendar (Form
      1341) and all of the green envelopes you will need for the
      year.




Page 28
  Monthly and Quarterly Deposit Forms
  Does not pertain to those on CG’s payroll system


   Deposit forms are pre-filled with employer contribution rates.
   Deposit forms are bar coded with the employer code and date
    information. It is important to use the form that corresponds
    with the appropriate month.
   Before sending the deposit form, be sure to complete the
    contact person, signature, telephone, and date.
   The “Employer Reporting” link includes status updates and
    verifies confirmation of receipt for deposits.




Page 29
  Monthly Deposit Process
  Does not pertain to those on CG’s payroll system

   For the first two months in a quarter
    Refer to the Due Date Calendar
    If you are reporting contributions on a Monthly Deposit
          form:
             Mail or fax the Monthly Deposit of Retirement Contributions
              (Form 1244), which you completed through EES and printed
              as a PDF document; and
             Mail the remittance (if you have authorized ACH, fax the
              deposit form by the due date OR if you have authorized
              debit from your account, fax the deposit form by noon the
              day before the due date)



Page 29
  Quarterly Deposit Process
  Does not pertain to those on CG’s payroll system

   Last month in a quarter
    Refer to the Due Date Calendar.
    If you are reporting contributions on a Quarterly Deposit
          form:
    Mail or fax the Quarterly Deposit (Form 1246) you completed in
          EES and printed as a PDF document; and
             Mail the remittance (if you have authorized ACH, fax the deposit
              form by the due date OR if you have authorized debit from your
              account, fax the deposit form by noon the day before the due
              date); and
             Quarterly payroll information should be uploaded via EES or
              submitted via EES-ER.

Page 29
  Printing Your Deposit Forms
   When you complete your monthly or quarterly deposit
    form on EES, it is important to click the “Create PDF”
    button at the bottom of the screen before printing so that
    the form prints properly.
   The form is not sent to the Retirement Systems via the
    Internet. You must print and mail the form along with
    your remittance.




Page 28
  Late Payments
   The Retirement Systems will notify an employer if the
      monthly remittance is not received within 10 days of the
      due date.
             Late remittances are subject to interest charges.
             The interest rate is based on the adjusted prime rate (as of
              March) and is updated annually in July.
   Employers will also be notified if the quarterly payroll
    information is not received within 10 days of the due date.
   For updates regarding received dates of deposits and
    quarterly payroll information, select “Employer Reporting”
    on the EES website.

Page 28
  Quarterly Payroll Information
  Does not pertain to those on CG’s payroll system

    There are two ways to submit quarterly payroll
          information through EES:
             Upload a text (.txt.) document
             Process and submit an EES-ER report
    There are instructional videos available on the EES
     website to guide you through the process.
    The submission of magnetic media through the mail is
     prohibited due to the Financial Identity Fraud and
     Identity Theft Protection Act effective July 1, 2009.


Page 29
 Posting Service Credit

  Service credit is awarded to members based on
   monthly compensation and dates of employment
   (taken from reported contract length and months
   paid information).
  State ORP members are not awarded service credit.




Page 33
  Posting Service Credit

   Monthly Compensation Threshold
     Currently $580/month effective October 1, 2009
     Threshold increases in conjunction with increases in
      the federal minimum wage. Minimum wage x 80 hours
      per month = threshold.




Page 33
School Districts and Contract Lengths
  It is very important to consider the implications of changing an
   employee's contract length before the fiscal year ends.
  If, in the September quarterly report, you report an employee
   on a 10-month contract, then the employee's service credit will
   be edited so that by the end of the school year, she will have
   earned one full year. The employee earns 1/10th of a year of
   service for each month paid.
  If you change the contract length to 11 or 12, for example,
   then the employee will be short service credit for the year.
  Refer to the Contract Period Chart found in your Covered
   Employer Procedures Manual, Page 32.

Page 31
  Electronic Employer Services (EES)

   You can select “Employer Reporting” to view items
    that are due and initiate your contribution reporting
    (does not apply to agencies on the CG’s payroll
    system).
   Errors on your reports can be found by selecting
    “Employer Transaction Error List.”




Page 27
  Electronic Employer Services (EES)
   It is very important to resolve errors as soon as possible.
              By checking errors, employers can ensure all records
               are posted in a timely manner. Any questions can be
               referred to your employer representative.




Pages 35
  Electronic Employer Services (EES)
  Clearing Reporting Errors
   After a report has been received and the records have been released
    for posting to individual accounts, the Employer Reporting
    representative will review records in an “error” status. Employers
    can view the same error screen as our staff.
   From the EES main screen, select“Employer Transaction Error List.”
    The next screen displays transactions in an error status. Select the
    “Trans Code” to view the detail for each record. Many errors involve
    missing enrollment dates, name changes, retirees for whom the
    Retirement Systems needs a current return to work date, and money
    errors. If you don’t understand an error message, a help screen is
    available.



Page 35
  Corrections to Quarterly Reports

   If a service or contribution error was made on a past
    report, you can correct the reporting by submitting a
    Supplemental Contribution Report (Form 1227).
   When completing Form 1227, fill out the top portion
    by listing your five digit employer code, the name of
    your entity and the reason for the supplement. When
    completing Section I of the form, follow the
    instructions on the second page. Enter only one fiscal
    year per form.


Page 36
  Corrections to Quarterly Reports
   (continued)

   Section II is the calculation of the amount due, or the credit.
    Apply employer rates for the fiscal year, incidental death
    benefit, and accidental death program rates. Add these
    amounts to the member contribution and calculate the total
    amount due, or the credit.
   Be sure to sign Form 1227 and include a phone number.
   Fiscal Year Contribution Rates for Employers and Members
    (Form 1340) may be useful as you calculate the totals on the
    supplement.
   For agencies on the CG’s payroll system - corrections to State
    ORP accounts need to go through the CG’s office. They will
    remit the appropriate amounts of money to the Retirement
    Systems and the State ORP vendor.
Page 36
  Corrections to Quarterly Reports
  (only pertains to those on CG payroll system)

   If a member should be State ORP but the money on the
    quarterly report was submitted as SCRS, the Retirement
    Systems will adjust the posting and send to the CG’s office.
    The CG will forward the proper remittance to the State ORP
    vendor.
   If a member should be SCRS but the money on the quarterly
    report was submitted State ORP, the Retirement Systems will
    adjust the posting and notify the employer to correct the
    payroll record for future deductions. The employer will be
    billed for additional member and employer contributions due
    SCRS. The employer is responsible for working with the CG’s
    office to recoup money from the State ORP vendor.

Page 36
  Corrections to Quarterly Reports
  (only pertains to those on CG payroll system)

   If a member should be PORS and is submitted SCRS,
      SCRS will adjust the quarterly report and bill the
      employer for the contribution difference. Likewise if
      the member should be SCRS and is submitted as
      PORS, the Retirement Systems will issue a credit to
      the employer for the contribution difference.

   If a member switches systems (SCRS to PORS, or PORS
      to SCRS), a new Enrollment Form (Form 1100) must be
      submitted to the Retirement Systems to ensure
      proper credit.

Page 36
  Supplemental Service Report
  (Form 1224)

   This form is used to report contributions for members
    who are in a specific type of leave without pay who wish
    to continue their contributions.
   Examples:
             Military leave (USERRA)
             Workers’ Compensation




Page 36
  Furlough Supplements
  (applies to state agencies, k-12 schools, and institutions of higher education)


   Agencies who institute a furlough program should
    remit the member and employer retirement
    contributions for SCRS, PORS, and State ORP
    participants.
   No furlough contributions are due for Teacher and
    Employee Retention Incentive Program (TERI)
    participants or other working retirees.
   Contributions are based on the rate of salary
    immediately prior to a furlough period.
   The supplements can be uploaded in Excel or text
    format to our secure EES website,
    www.retirement.sc.gov/ees.
Page 38
  Working Retiree Contributions

   TERI program participants and retirees who return to work for
      a covered employer must pay contributions at the same rate as
      an active member.

   Additional service credit will not be accrued.

   The contributions will be credited to the member’s account
      and upon death, any remaining contributions that have not
      been exhausted through benefit payments will be paid to the
      beneficiary.




Page 22
  Working Retiree Contributions
  Notification of Employed Retiree
   The Retirement Systems must track the date an employee
    returns to covered employment after their date of retirement.
    Employers should enter the return to work date in EES.

   If the member works for a period of time, then skips a quarter
      before returning, a new hire date must be submitted.

   If a TERI participant ends TERI, and then returns to covered
      employment, a new date (after TERI termination) must be
      submitted.


Page 22
  Working Retiree Contributions
  The Retirement Systems needs the Notification of
  Employed Retiree (Form 1114) in two situations:
   If the employee is a disability retiree, Form 1114 must
    be completed and mailed or faxed to us. You must
    include the employee’s salary/pay on this form.
   If a return to work retiree has a name change, the
    date should be provided via Form 1114.

  More information about entering return to work dates
  in EES is covered in the EES module of this training.

Page 22
  Working Retiree Contributions
   If an SCRS retiree, without a PORS account, returns to work in a
      PORS position:
             retiree and employer pay the SCRS rate

   If a PORS retiree without an SCRS account returns to work in an
      SCRS position
             retiree and employer pay the PORS rate

   If a working retiree is receiving both an SCRS and a PORS
      retirement benefit, the working retiree will remit contributions
      to the system into which an active member employed in the
      position would normally contribute.

Page 23
  Annual Leave Payments for TERI
  Participants
   No annual leave payment is included at the beginning
      of TERI participation.

   Contributions should be deducted on up to 45 days of
      the annual leave payment at TERI termination.

   The average final compensation (AFC) at the end of
      TERI will be recalculated to include unused leave paid
      at the termination of TERI.


Page 24
  Employer Reporting Representatives
   Our Employer Reporting Department has staff assigned
    specifically to your particular employer code.
   See the Notice included with the July Employer Update for
    your representative’s name and contact information.




Pages 2-3
Summary Quiz
 If you do not already have access to EES, how do you
  obtain a USERID and a PIN?
 What is the contribution rate for members of SCRS,
  PORS, State ORP, and working retirees?
 What is the base employer retirement contribution
  rate for SCRS, PORS, and State ORP?
Disclaimer
THE LANGUAGE USED IN THIS PRESENTATION DOES NOT CREATE ANY
CONTRACTUAL RIGHTS OR ENTITLEMENTS AND DOES NOT CREATE A CONTRACT
BETWEEN THE MEMBER AND THE SOUTH CAROLINA RETIREMENT SYSTEMS.
THE SOUTH CAROLINA RETIREMENT SYSTEMS RESERVES THE RIGHT TO REVISE
THE CONTENT OF THIS PRESENTATION.

This presentation is meant to serve as a guide but does not constitute a binding
representation of the South Carolina Retirement Systems. The statutes
governing the South Carolina Retirement Systems are found in Title 9 of the
South Carolina Code of Laws, and should there be any conflict between this
presentation and the statutes or Retirement Systems’ policies, the statutes and
policies will prevail.

Employers covered by the South Carolina Retirement Systems are not agents of
the Retirement Systems.
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