Arkansas Public Employees Retirement System. presents. From Hire to Retire. A Complete How-To Guide of Employer Responsibilities . Introduction. Why Are We Here?. Welcome To APERS’ Employer Training. Topics New Hires Eligibility /Contributory & Non Contributory Forms
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A Complete How-To Guide of
Why Are We Here?
Throughout this presentation you will see this symbol “►”.
By clicking on the “►”, you will see additional slides on that topic.
These additional subtopics are:
These subtopics can be found on your CD and can be viewed as individual PowerPoint presentations.
They’re Hired – Now What?
Full-Time or Part-Time?
All employees hired with the intent of working at least 80 hours per month and 90 consecutive calendar days should be enrolled in APERS. This includes part-time, temporary and seasonal employees.
The employee’s earnings must also meet Federal minimum wage guidelines.
Employees who are current members of or eligible for membership in another public retirement plan, or are currently receiving a benefit from APERS are NOT eligible for enrollment.
Be sure to ask all new employees if they are currently employed anywhere else before determining whether they meet the eligibility requirements.
Contact the APERS Call Center if you are unsure whether the second employer is covered by APERS retirement.
Act 1281 (Effective July 16, 2003) requires that newly elected Mayors and City Clerks of a first class city who are serving in a municipality that participates in APERS shall become participating employees in APERS unless they opt to participate in the local retirement plan.
The officials have 90 days after first assuming office to provide written notice that they opt to participate in the local retirement plan. APERS will refund any matching payments or contributions once the official has opted out of APERS.
Employees hired after July 1, 2005 who have never worked for an APERS-participating employer or are returning to work more than six (6) months after last being reported to APERS by an APERS-participating employer MUST be enrolled as contributory members.
Employees who terminated from an APERS-participating employer within the last six (6) months (and were non-contributory when they left) may choose to remain non-contributory or may decide to change to contributory status. All employees returning to an APERS-covered employer within the six month period must complete a Return to Work for an APERS-Covered Employer Form and submit it with the MDF.
There is no waiting period for enrollment into APERS. If an employee meets the eligibility requirements, s/he should be enrolled on/as of the first day of work.
Membership Data Form ►
NOTE: The new member will receive a Member Handbook mailed directly from APERS once the completed Membership Data Form has been received.
Designation of Beneficiary
Only non-contributory employees who are returning within six (6) months of terminating from another APERS employer should complete this form.
Return to Covered Employment
Choose Contrib or Non-contrib Plan
The employer will complete the bottom portion of the form and submit it to APERS with the Membership Data Form.
The Three “Rs” –
Employer Rate – 11.01%
Employer Rates are determined each fall based on the most recent actuarial valuation and are set by the APERS Board of Trustees.
Employee contributions are deducted “pre-tax”, meaning that the contributions are NOT included when the employer calculates federal and state income taxes on gross pay.
Social Security and Medicare taxes should be calculated on the full gross pay of the employee.
Payments are due to APERS by the 10th calendar day after the employer’s payroll processing date*.
*Payroll processing date is when your payroll has been calculated and is ready for checks to be issued – NOT when your employees are paid.
Remittances postmarked on or before the 9th* calendar day will not be considered delinquent regardless of when they are received.
*If the 9th falls on a weekend or a federal holiday, you have until the next business day to postmark your remittance.
The Remittance Form ►
A step-by-step guide for the Electronic Spreadsheet can be found on the APERS website at WWW.APERS.ORGor in the Employer Guide.
I Messed Up – Now What?
Delinquent Service occurs when an eligible employee is not enrolled/reported when hired.
8% interest is calculated on the amount of employer matching that should have been paid from the date it was originally due.
It is important to note that since all new employees are contributory after 7/1/05, the employee will also owe the delinquent contributions in order for the service to be established.
Forms are available at http://www.apers.org, on the CD you received at this training session or in the Employer Guide. You may also contact the Member Records Unit staff to assist you in completing the forms.
Earnings should be listed by fiscal year (July through June) with the appropriate service credit for each month. Member Records staff will review the forms and will send a letter specifying the amount due to establish the service.
Remit amounts for delinquent service to the attention of Member Records ( not with regular payroll remittances). Be sure to include copies of the Delinquent Service Forms.
Delinquent employee contributions should be remitted by the employer. It is the employer’s decision as to whether the employee must reimburse the employer for the contributions.
In the letter to the employer, Member Records will denote the date that payments are due to avoid additional interest.
What to Report/What Not to Report
PERIOD IN WHICH IT WAS EARNED)
One-time payments to employees are not eligible to be included in wages reported for retirement service credit.
When a retroactive wage increase is given to your employees, you will need to complete the Retroactive Wage Form to indicate which month the wages would have been earned and reported to APERS.
Completing the Retroactive Wage Form
Retroactive wages must be completed on a month by month basis for each fiscal year involved.
A form must be completed for each employee who received the retroactive wage increase.
Payment of Matching and Contributions for Retroactive Wage Increases
Completing the Wage Settlement Form
Completing the Wage Settlement Form
Payment of Matching and Contributions for Wage Settlements
Employees Returning from Active Duty Deployment
The Uniformed Services Employment & Reemployment Rights Act (USERRA) provides that an employee returning to work from active duty within the prescribed guidelines of the law is entitled to retirement service credit for the time they were deployed.
Employers should obtain a copy of the DD - 214 form and submit it to the Member Services Section of APERS for processing.
Day to Day Tasks
If an employee notifies your payroll office of a name or address change, please have them complete an APERS change of name or address form so our records will be correct.
The employee completes the top portion of the form and has it notarized.
The employer completes the bottom box on the form, indicating when employment was terminated and the last month wages will be reported to APERS.
DROPS are always effective on the 1st.
It will normally be necessary to calculate partial earnings/matching /contributions for the part of the pay period before the DROP effective date.
Employers may also elect to pay matching for the entire pay period and then request a refund from APERS.
Deferred Retirement Option Plan (DROP)
Terminate the employee from the Earnings & Service Report by placing a “T” in the appropriate column.
No payments for matching or contributions should be remitted to APERS once a member enters the DROP.
DROP Participant Employment
APERS will send this report to employers each month in the monthly reporting packet.
DROP participants must be working to remain in the DROP.
DROP Participant Employment
The employee should:
Request a Retirement Application Packet from APERS and understand the deadlines for submitting the application for the month selected to retire.
Notify his/her employer of retirement date.
Contact your insurance administrator (EBD for state employees) to set up retiree insurance deduction(s).
The employer should:
Complete the Employer Verification of Termination and Earnings Form to report anticipated earnings for the last month the employee is scheduled to work.
These earnings will be used to compute the monthly benefit of the retiring member, so it is important for the employer to complete and return the forms accurately and quickly.
The employer should remove the retiring member from the Earnings & Service Report by placing a “T” in the appropriate column.
APERS retirees may return to work for an APERS-participating employer 30 days (90 days for elected officials) from their effective date of retirement.
APERS retirees cannot accrue additional service credit and should not be enrolled or reported to APERS.