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MnSCU Retirement Plans

MnSCU Retirement Plans. Basic Training for Campus HR Administrators. Planned Modules:. Module 1: Retirement Plan Concepts Module 2: Eligibility for Primary Plans Module 3: Reporting in SCUPPS Module 4: SRP: Eligibility and Coding Module 5: Forms Completion & Processing

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MnSCU Retirement Plans

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  1. MnSCU Retirement Plans Basic Training for Campus HR Administrators

  2. Planned Modules: Module 1: Retirement Plan Concepts Module 2: Eligibility for Primary Plans Module 3: Reporting in SCUPPS Module 4: SRP: Eligibility and Coding Module 5: Forms Completion & Processing Module 6: Phased Retirement Programs Module 7: Voluntary Retirement Programs Module 8: Retirement Plan Distributions

  3. Programs Available in MnSCU • Statutory/contractual phased retirement • Annuitant Employment Program (AEP) • Link to Phased Retirement/AEP Matrix: http://www.hr.mnscu.edu/retirement/campus_resources/documents/Phased_AEP_Matrix.pdf

  4. Phased Retirement Programs • Phased retirement programs are reduced workload assignments that assist an individual to gradually transition into full retirement: • While earning full retirement credit • Receive full employer insurance contribution • Earn pro-rated leave • Continue to earn seniority • Eligible for tuition waiver benefit • Link to Phased Retirement Program Tips & Tools: http://www.hr.mnscu.edu/retirement/campus_resources/phasedRetirement.html

  5. Statutory phased retirement • Minnesota Statutes § § 354A.094, 354B.31 and 354.66 are legislative basis for phased retirement (“qualified part-time teachers”) • Participation is normally based on a full fiscal year • TRA General allows MnSCU faculty to retire after the first semester in a year, but must work pro-rata in that semester • Eligibility: • Unclassified (non-”rule 10”) faculty and staff who are covered by TRA and IRAP, and 1st class cities TRA • 3 or more years of allowable service credit in the fund • During participation, may not be covered by any other retirement fund

  6. Statutory phased retirement • Part-time definition under statute: • “….is employed for at least 50 full days or a fractional equivalent….for which the faculty member is compensated in an amount not exceeding 80 percent of the compensation…for a full-time faculty member….” • Employer and Employee pay into the appropriate retirement fund so that employee receives full service credit

  7. Statutory phased retirement Must be on the program for at least one year but no more than 10 years May return to full-time employment at the end of participation Statutory provisions are available to all eligible unclassified employees where their union contracts or salary plans do not contain additional restrictions Link to Statutory provisions page: http://www.hr.mnscu.edu/retirement/campus_resources/documents/Phased%20Retire%20Stat%20Provisions.pdf

  8. Contractual Phased Retirement • Additional restrictions and provisions are included in following contracts: • IFO • MSCF

  9. Contractual Phased Retirement • Eligibility • IFO: 55 + 10 FTE years of service in State Universities • MSCF: 55 + 10 FTE years of service in State Colleges • IFO & MSCF must retire at the end of program participation

  10. Contractual Phased Retirement • Under IFO Contract, approval is discretionary • Under MSCF Contract, approval “shall be granted…subject to [contractual] provisions” • Subject to 7% of UFT limit • Subject to 50% department limit

  11. Statutory/contractual phased retirement • Insurance Benefits: • Eligible for insurance as if employed full-time • Separation Incentive: • If otherwise eligible, benefit is paid based on age and other contract provisions at time of termination • Deadlines to apply for participation in statute and in contracts • Summer session work counts towards the following year (Change in FY10 & after)

  12. IFO phased retirement • Special features: • If eligible for ESI, cannot receive designation for 100% of base salary if over age 55 • Can withdraw up to 25% of SRP yearly during phased program • Faculty are expected to perform full range of duties on a pro-rata basis • Annual workload must be between .33 and .67 FTE • Earn pro-rated seniority

  13. MSCF Phased Retirement • Special features: • Must be a full-time unlimited faculty • Length of participation and period of workload should be mutually agreed upon. If unable to agree, the faculty member’s request is granted unless college can show it would “pose a unique and undue burden on the institution”. • Link to Phased Retirement Guideline: http://www.hr.mnscu.edu/guide_interpretations/documents/RET0001.pdf

  14. MSCF Phased Retirement • Special features: • A copy of the phased retirement agreement is forwarded to OOC and MSCF • Annual workload must be between .40 and .80 FTE. Special provisions for base year overload. • Earn seniority as if full-time • Faculty are expected to perform full range of duties on a pro-rata basis

  15. Phased Retirement – Purchase of Retirement Service Credit/Contributions • All faculty/staff other than MSCF: • Buy up to 1.0 FTE from reduced workload • All work counts towards FTE limits • MSCF Faculty: • Buy up to 1.0 FTE from reduced workload • Base year determines overload $ limit • All work counts as regular workload or goes to $ limit • ER pays only to 1.0 FTE

  16. Phased Retirement – Purchase of Retirement Service Credit/Contributions Find these forms at: www.tra.state.mn.us • TRA Part-Time Teacher Forms: Conditions & Form • Worksheet

  17. Phased Retirement – Purchase of Retirement Service Credit/Contributions IRAP Form On MnSCU Retirement Site: Phased & Sabbatical Contributions

  18. Annuitant Employment Program (AEP)—Statutory Provisions • Link to AEP Tips & Tools: http://www.hr.mnscu.edu/retirement/campus_resources/aep.html • MnSCU-specific legislation (M.S. § § 136F.48, 354.445, 352.1155 and 354A.31) • Covers unclassified (non-”rule 10”) faculty and staff who are in TRA, MSRS General or Unclassified Plans, IRAP, or first class cities TRA. • Allows colleges/universities/OOC to continue to employ faculty and unclassified staff who begin drawing a retirement annuity or benefit.

  19. Annuitant Employment Program (AEP)—Statutory Provisions • Eligibility: • Link to AEP Guidelines: http://www.hr.mnscu.edu/guide_interpretations/documents/RET0005.pdf • Retires and has at least 10 YOS (can be a combination of college/university/OOC) • Employed on a full-time basis immediately preceding retirement in a qualified position • Begins drawing a retirement benefit/annuity; no additional retirement deductions are taken • Returns to work between .33 and .67 time basis • Summer session belongs to the following year

  20. Annuitant Employment Program (AEP)—Statutory Provisions • Eligibility: • No break in service, retained at same college / university / OOC • Insurance provided at full-time rate • Other benefits are provided pro-rata • All separation incentives and severance payments are made at the end of participation in the AEP Program, increase in age reduction applies.

  21. AEP - IFO and MSCF Differences • IFO faculty on the AEP retain tenure status • MSCF faculty on the AEP must have the appointment status of temporary part time (TPT)

  22. Phased Retirement vs. AEP

  23. Phased Retirement vs. AEP

  24. Module 6: Phased/AEP Retirement Questions?

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