Employer news, 2011 (1st quarter)

EMPLOYER NEWS - 1st Quarter, FY 2011

Rehired Retiree Reporting

ERS Employees Working Less than 100% Time

Rehired Retiree Reporting Training was conducted in July at Technical Colleges around the state and also at our offices in Atlanta. Thanks to all who attended and to the following Technical Colleges for their help in making the training a success: Albany, Athens, Augusta, Central Georgia, Chattahoochee, Georgia Northwestern, North Georgia, Okefenokee, Savannah, Southeastern and Southwest Georgia. The training materials are available in the Employers section of our website at www.ers.ga.gov.
As announced last quarter, we have developed an online reporting module to assist employers in reporting and tracking the hours of rehired retirees. The new module is on the existing employer desktop and can be accessed using your current login and password. The module includes functionality to upload a file or manually report rehired retiree data. It also provides year-to-date tracking of compensation and hours worked.
Please Note: All ERS covered employers must report each month by the 5th. If your agency does not have rehired retirees on staff, indicate this each month using the "No Data to Report" function.
Independent Contractor Verification
Act 275 of the 2010 Legislative Session clarified the rules regarding rehired retirees who return to state service as or for an independent contractor. In order for the retiree to be excluded from the 1,040 hour limitation, all three (3) of the following must be certified by the employer to ERS:
The contracting entity has multiple employees.
The contracting entity has multiple contracts and the contracts are not limited to employers as defined in O.C.G.A. 47-2-1.
The contractual relationship with the employer was not created to allow a retired employee to continue employment in a position similar to the one held before retiring.
The Independent Contractor Verification Form is now available in the Employers section of the ERS website. The form must be completed for all rehired retirees who qualify for the exclusion from the 1,040 hour work limitation.

Some employers have inquired regarding whether a fulltime ERS covered employee that begins to work part-time hours would be ineligible for membership. Eligibility for ERS membership requires that a member hold a position which is the employee's primary occupation and which calls for performance of duties for at least 35 hours per week for a minimum of 9 months each year. After membership is established, if an employee remains in a position which meets these requirements, he or she may continue to participate as a member even if the hours actually worked are less than the full-time requirement.
You should report the employee at percentage time, determined by dividing the actual hours worked during a month by the normal full-time hours for the month. Service is credited at the percentage reported. For example, if reported at 60% time, the employee receives .6 months credit for that month.
Members who transfer into a part-time or hourly position should not be reported regardless of the hours worked.
Workshop for Retirement Application Processing (WRAP) Now Available Online
Our popular Workshop for Retirement Application Processing (WRAP) is now available online! This workshop is for ERS-covered employees within 3 months of retirement, but contains useful information for other employees within a few years of retirement. Each section of the ERS retirement application is covered, with detailed explanations of the different retirement options, as well as beneficiary and Group Term Life Insurance information.
The entire presentation takes approximately 40 minutes to view, and employees can access different sections at different times to accomodate their personal schedules. It is helpful to have a retirement estimate on hand when viewing the workshop.
Employees can obtain an estimate by accessing their account on our website at www.ers.ga.gov. The WRAP presentation is available in the Seminars section of our website. Let your employees know about this resource.

ERS General Office ERS Toll Free

404-350-6300 800-805-4609

ERS General Fax Web



404-350-6308 www.ers.ga.gov

PSERS Rehired Retirees
Reporting for the PSERS plan is from September May of each year. However, PSERS retirees that return to work can do so after a one month break even if the one month break does not occur during the PSERS reporting year. For example, a PSERS employee who retires on May 23, 2011 would be eligible to return to service for a PSERS covered employer as early as July 1, 2011. Once reporting begins in September, please remember the following requirements for PSERS retirees who return to work:
Rehired PSERS Retiree Under Age 65
Complete PSERS Rehired Retiree Reporting Form. Return to Active status, contribute to PSERS and
accrue additional service credit. Retirement benefits will cease.
Reapply for retirement benefits upon termination OR
upon reaching age 65 (new).
New retirement benefit will be based on total accrued
service and current age, actuarially reduced by any benefits already received prior to reemployment.
Rehired PSERS Retiree Age 65 or Older (New)
Complete the PSERS Rehired Retiree Reporting Form. Employee must indicate on the form whether they elect to:
Not contribute to the system, in which case the mem-
ber's retirement benefit shall not cease, and no additional benefits will accrue; OR
Cease their retirement benefit and establish active
membership in PSERS. At the end of such service, the member may reapply for a retirement benefit. The retirement benefit will be based on total accrued service, actuarially reduced by any benefits already received prior to reemployment.
Rehired retirees who reach age 65 subsequent to their reemployment and who initially opted to cease their retirement benefit will be sent a notification from PSERS informing them of their right to discontinue PSERS contributions and reapply for retirement benefits.
All PSERS Rehired Retirees
All PSERS employers that employ retired PSERS members must certify on the PSERS Rehired Retiree Reporting Form the name and age of the rehired retiree. Any employer that fails to provide this information shall reimburse the retirement system for any benefits wrongfully paid. The retired member must notify the employer of their retirement status prior to employment.
In the event of any conflict between this publication and the laws, rules and regulations governing the plans, the terms of the laws, rules and regulations will have precedence.

PSERS and GDCP Membership Applications Discontinued
Reminder: Effective July 1, 2010, new GDCP and PSERS members should no longer complete a Membership Application. Instead, after the employee's first contribution is reported to ERSGA, a letter will be sent to the employee instructing them to go online at www.ers.ga.gov to designate their pension fund beneficiaries. We continue to receive a significant volume of these forms from employers. Please discontinue sending paper Membership Applications for your PSERS and GDCP hires.
JRS Employer Contribution Rate Decreased
Effective July 1, 2010, the JRS employer contribution for Group Term Life Insurance (GTLI) was reduced from .25% to 0%. The elimination of the employer contribution to GTLI decreases the total JRS Employer contribution rate to 3.85%. If your agency participates in the JRS plan, you will be issued a refund of the .25% GTLI contribution by no later than October 31, 2010.
The change in the JRS employer contribution rate does not affect GTLI coverage for JRS members. JRS members that have elected coverage or who received coverage as a condition of employment will remain GTLI eligible.
University System of Georgia Board of Regents Rehired Retirees
Act 275 of the 2010 Legislative Session updated the ERS' statutory definition of employer to include the Board of Regents of the University System of Georgia. Since the definition of employer now includes the Board of Regents, an ERS retiree going to work for a University System of Georgia Employer would be subject to the annual 1,040 hour work limitation. This includes service as an employee or as or for an independent contractor (unless the independent contractor meets specific criteria see Independent Contractor Verification, Page 1), and is regardless of pension plan eligibility at hire including TRS or ORP.
GSEPS Pension Refund Application Available
The refund application for GSEPS pension contributions is now available on our website in the GSEPS Pension Plan section. This application should be used for separated GSEPS members wishing to obtain a refund of their pension contributions. GSEPS 401(k) contributions must be requested from the 401(k) administrator at 1-866-694-2777 or https://mygapsr.ingplans.com.