GPRS Presentation - Government Payroll Review Seminargprsmn.weebly.com/uploads/2/7/6/2/2762393/gprs... · GPRS Presentation Luis Argueta, Employer Communications . Agenda For Annual

GPRS

Presentation

Luis Argueta, Employer Communications

Agenda For Annual Salary Threshold, pt. 1

• Intro to Earnings Threshold

• Basic Rule

• Salary Projections

– Scenarios

• PERA Tracked Earnings

– View Tracked Earnings

Public Employees Retirement Association

Agenda For Annual Salary Threshold, pt. 2


• Part 1- Recap Rewind

• Threshold Description

• Terminations

• Delayed Enrollment

• Report walkthroughs on ERIS

• Report: Prior vs current year

• Refund details

• Excluded, then earnings exceed threshold

Intro to

Earnings Threshold

PERA Eligibility Time and money

Job description

• Part-time

• Full-time

• Hourly

• Salaried

Eligibility due to salary

6

Intro to Earnings Threshold


Basic Rule

Historical Earnings Threshold Monthly Salary Thresholds through the years

Date Per Month

July 1, 1988 through December 31, 2014 $425

May 1, 1981 through June 30, 1988 $325

June 3, 1977 through April 30, 1981 $250

March 24, 1974 through June 2, 1977 $150

July 1, 1961 through March 23, 1974 $75

Prior to July 1, 1961 $50


Basic Rule of Eligibility

PERA membership under a DBP-

1) Required for public employees

2) who have annual earnings in excess of PERA’s salary threshold

9

With some exceptions…


Annual Salary Threshold

10

General employment and school-year


$425 is still relevant

11

$5100? $3800?


12 x $425 = $5100

9 x $425 = $3800

Salary Projections

Employee projections One position


Part-time, 20hrs/wk @ $16/hr

Time x Money 20 x 16 = $320/week x 52 = $16640/year

Employee projections ??? x money


Part-time, ??hrs/wk @ $16/hr

Average time x Money 10 x 16 = $160/week

x 52 = $8320/year

Employee projections School calendar days


Part-time, 3hrs/day @ $9/hr

Time x Money 3 x 9 = $27/day

x 170 days = $4590/year

Employee projections 2 positions


PT, 6hrs/wk @ $10/hr

(6 x 10) + (6 x 12) = $132/week x 52 = $6864/year

PT, 6hrs/wk @ $12/hr

Employee projections 1 position + Missing picture


? x 17 = $???/week x 52 = $???/year

NEW Part-time, open ended @ $17/hr

Notice of Non-Covered Employment

Public Employees Retirement Association of Minnesota

18

Required for employees excluded

due to salary

Annual Threshold

Provisional Enrollment


19

Annual Threshold

Membership Eligibility Checklist

20

A great companion resource!


PERA Tracked Earnings

Defined Benefit Plan (DBP)

Threshold Monitoring

Threshold Monitoring

Tracked earnings

Part 1- Recap Rewind

Earning Amounts Calendar and Fiscal Year calendar earnings


Time x Money 3 x 9 = $27/day

x 170 days = $4590/year

$5100 – Calendar year $3800 – Fiscal year

Q&A Highlight

28

Notice of Non-Covered Service & Provisional Enrollment form


Q&A Highlight

29

Continued


Threshold Description

Eligibility with an employer PERA eligible positions with one employer


individual employer

City A City B

Annual Salary Threshold Report

32

Who is included in an Annual Salary Threshold report?

– Employee: full year of earnings in the previous year

– did not exceed the threshold

Annual Threshold


Partial Year enrollment

Partial year of earnings:

33

Annual Threshold


Partial 2016

Full 2017

Refund?

Employee did not meet Threshold

34

If earnings do not exceed the threshold

Annual Threshold

Partial 2016


$2000 $3000

Threshold Timeline Examples

35

Calendar year annual threshold


Calendar Year 1/1 - 12/31

Threshold is $5100

Example 1

36



Example 2

37



Example 3

38



Threshold Timeline Examples

39

Fiscal year annual threshold


Fiscal Year 7/1 - 6/30

Threshold is $3800 for school year employees

Example 1

40



Example 2

41



Example 3

42




43

Annual Salary Threshold Report - ERIS Annual Threshold

Terminations

Terminated

Projected at hire -

Full year of earnings =

Did not meet the threshold

40 x 15 = $600/week x 52 = $31200/year


Threshold Status Change Terminations


Example

47

Terminations


Full-time, 40hrs/wk @ $15/hr

40 x 15 = $600/week x 52 = $31200/year

Provisional Enrollment

48

Documentation

Provisionally Enrolled Employee terminates:

1) without exceeding the threshold

2) before PERA has received a full year of earnings.


Delayed Enrollment

Scenario 1 Exclude, monitor and enroll


Scenario 2 Exclude, monitor and enroll


Missing piece of the puzzle

52

Your records vs ours

Public Employees Retirement Association Public Employees Retirement Association

The report asks about prior years, but what about the current year?

Future development ERIS report enhancements

Enhancements to report

CY 2017 – Feb 2018

FY 2018 – August 2018


Employee will not qualify for PERA

55

In the meantime…

1) Complete the report

2) Stop withholding contributions

3) Email PERA at [email protected] to:

a) Tell us the paid date of the final contribution

b) Request a manual refund of the current year


Refund details

Employers

57

Credit memo

Credit memo via email


Employees

58

Check by mail

Check to home address

1099R issued by PERA

• 10% Federal tax withheld


Excluded, then earnings Exceed Threshold

Employee exceeds threshold Reporting


1)

2) Earnings “..establish eligibility retroactively to the

first month that $425 was reached.”

Resources for Employers

Employer Response Line

– 651-296-3636 / 888-892-7372

PERAphrase newsletter

Employer Manual

MNPERA.org

– PERA 101: Go2 Resource

– FAQs

– Reporting Requirements

– Education: Next Webinar: Annual Threshold, pt. 2

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That’s a wrap!

Resources for Employers


Documents

GPRS Presentation - Government Payroll Review Seminargprsmn.weebly.com/uploads/2/7/6/2/2762393/gprs... · GPRS Presentation Luis Argueta, Employer Communications . Agenda For Annual