Welcome & Brief Overview of MainePERS Defined Benefit Plan PLD & Teacher Social Security / MainePERS PLD Plan Administration Disability Benefits Survivor

Welcome!

MainePERS 2015 Regional

Employer Trainings

Orono, Maine September 18,

2015

Welcome & Brief Overview of MainePERS

Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan Administration• Disability Benefits• Survivor Benefits- PLD & Teacher

Group Life Insurance

Defined Contribution Plan - MaineSTART

Employer Services

V3/V10 Update (ESS)

Financial Reporting

Closure

Agenda

• Welcome & Housekeeping

• MainePERS Briefly

• Why Are We Here?

Let’s Begin

Todays Presenters

Marlene McMullen-PelsorManager, Employer & Survivor Services

Deanna DoyleRetirement Services Specialist

Ellen HughesDisability Supervisor

Lynn PeaseSurvivor Services

Supervisor

Stephanie FecteauPLD Plan

Administrator

Kathleen AlleyEmployer Services

Supervisor

Sherry VandrellDirector of Finance

Welcome

No Photo

• Please hibernate your technology (Cell phones and other electronic devices)

• Breaks and Lunch

• Photos

• Questions

• Other

Housekeeping

• Independent Public Agency

• Public Pension System

• Financial Institution

MainePERS Briefly

Employer Reporting Work Group

Why we are here…

• We are interdependent

• We want to be of assistance

• Trusted partners to call upon

MainePERS Employers Matter

MainePERS Employers Matter

• Welcome

• MainePERS Briefly

• We Want to Be of Assistance

MainePERS

Welcome


Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Benefits• Survivor Benefits- PLD & Teacher



Employer Services

V3 Update

Financial Reporting

Closure

Agenda

• What is a Defined Benefit Plan and who does MainePERS administer these plans for?

• Why is determining membership eligibility and accurate reporting so important?

• What are the types of questions or requests for information that I should contact Retirement Services for?

Retirement Services

Defined Benefit Plan

Retirement programs administered by MainePERS


• Governor

• Judicial

• Legislative

• State workers

• Teachers

• Participating Local Districts

What is the Defined Benefit Plan?

• Benefits are defined by a specific formula based on years of service and average final compensation;

• Eligibility for benefits is defined by the employee’s age and/or years of service;

• Investment risk is borne by the employer;

• Designed to provide a monthly benefit in a set amount for the retiree’s lifetime.

MainePERS administers Qualified Defined Benefit Plans under 26 USC Section 401(a)


Regular & Special PlansRegular Retirement Plan

• Retirement Plan with a Normal Retirement Age of 60/62/65 for Teacher Members 60 or 65 for PLD Members

Normal Retirement Age• Earliest you can retire without a benefit reduction

Special Retirement Plan• Retirement Plan that provides retirement at a younger age with

no reduction.• And/or Provides a higher level of benefits

Cost of Living Adjustment (COLA): Provision that provides an adjustment of up to 3% to all or a portion of a retiree’s benefit annually, once eligible A PLD may or may not have the COLA provision. All Teacher members have the COLA provision.


When is a member eligible for Service Retirement Benefits?• Upon meeting service and/or Normal Retirement Age

requirements of their plan;

• Service & Age requirements differ depending on plan

How are benefits calculated?• Based on Average Final Compensation (Average of member’s three

highest years of earnings);

• Years of Creditable Service;

• Age at retirement;

• Applicable benefit factors for the plan(s).

Members should contact Retirement Services if they have questions about qualifying for Service Retirement and/or how their benefits are calculated.


Will I be able to live on my defined benefit?

Under most regular plans, at Normal Retirement Age with 25 years of service credit, a member’s defined benefit

under the Full Benefit Option would be 50% of his/her average annual income.

Retirees will need 70%–90% of their current income to maintain their standard of

living in retirement.

Encourage your employees to START saving NOW to supplement their MainePERS benefit so that they can afford a comfortable retirement tomorrow!

Ways to Supplement:

• Accrue service credit in excess of 25 years

• Social Security or other Federal Pension Benefits

• Personal Retirement Savings Accounts- MaineSTART

Retirement Income

Determining Membership Eligibility

Who is Eligible?

Mandatoryvs.

Optional Membership


Determining Membership Eligibility - Teachers

Membership is MANDATORY for public school teachers in Maine as defined by statute.

Exception: Membership is OPTIONAL for Substitute Teachers!

1) Department of Education review & response

2) MainePERS reviews detailed job description and employee’s past history


Determining Membership Eligibility - PLDs

Who is covered?• Determined by Employer Exclusions;• Statutes & Rules

When is membership optional?• Elected Officials or Officials appointed for fixed terms;• Employee is covered by Social Security;• Employee has option to participate in Alternate Retirement

Plan that meets statutory requirements;• Chief Administrative Officer of PLD;• Any employee not subject to Municipal Public Employees

Labor Relations Law;• Employee in service on the date employer begins participation

with MainePERS


Determining Membership EligibilityOptional Membership & Importance of One-Time Elections

What does this mean for employees with optional MainePERS membership?

Elections to participate or not, that are in effect on July 12, 2010 or first made after are irrevocable and stand for all current and any future employment with that employer.

Employers are responsible for offering membership to eligible employees, documenting the election

& reporting it to MainePERS.


Required Membership Reporting & Forms

MainePERS uses the information you provide on membership forms & payroll filings to:

• Grant service credit;

• Determine vesting status & benefit eligibility:

• Calculate retirement benefits for your

employees - our members


Why is this information important?

Reporting Earnable Compensation

• What is Earnable Compensation?

• Why does it matter?

• What if I am not sure if a payment is earnable or not?

Contact Retirement Services


When should I submit a Personnel Status Change Form?

To report a Leave of Absence, submit a PSC when the leave begins AND ends. Also, submit when the type of leave changes.

Reporting- Membership Forms


• Termination• Separation• Death• Leave of Absence

When do I submit the Employer Preliminary Benefit Certification Form (PB Cert Form)?

Submit upon request from MainePERS, but only AFTER the employee has terminated.

Reporting- Retirement Forms


Timeliness is important.

When do I submit the Vacation and Sick Leave Reporting Form?

Reporting- Retirement Forms

Submit upon request from MainePERS, but only AFTER you have issued the final pay to your employee.

Call Retirement Services with questions about completing this form.


Service Retirees Returning to Work with the ‘Same’ Employer

1) Termination of ALL MainePERS-covered employment is required in order for your employees to be eligible for retirement benefits.

2) Employers must report retirees returned to work.

3) Employees may not know what plan they retired from.


What does ‘Same’ Employer mean for this purpose?

For retired State Employees and Teachers - Any State of Maine employer (including the Maine Community College System) or any public school in Maine if employed as a “teacher”.

For those retired from the PLD Consolidated Plan - Any PLD participating in the Consolidated Plan.

For those retired from a non-Consolidated PLD - The specific, non-Consolidated PLD the member retired from.

Call Retirement Services for information about what plan the employee you are hiring retired from and if they are returning to work for the ‘Same’ Employer.


Service Retirees Returning to Work with the ‘Same’ Employer

Early Service Retirees

For Retirees who retired early with an age reduction and are returning to work before reaching Normal Retirement Age.

• NO CONVERSATION BEFORE RETIREMENT about returning to work after retirement with any ‘same’ employer.

• Must be 30 days between termination of employment before retirement & re-employment AFTER effective retirement date.

• Cannot work more than 90 days per year.


‘Of Age’ Service State/Teacher Retirees

Must be 30 days between termination date before retirement & date return to work after retirement effective date.

Retired from a classroom based position?

Employers determine whether position is classroom based or not.


Yes NoCan return to classroom based position for 5 years at full salary & remain in classroom based position for another 5 years at 75% of salary; OR

Can return to classroom based or non-classroom based position for 5 years at 75% of salary

Can return to non-classroom based position for 5 years at 75% of salary

‘Of Age’ Service Retirees PLD, Legislators & Judges

• Cannot return to MainePERS covered employment until on or after effective retirement date;

• No other restrictions on time worked or pay.


What is the Defined Benefit Plan?

• Benefits are defined by a specific formula that is based on years of service and average final compensation;

• Eligibility for benefits is defined by the employee’s age and/or years of service;

• Investment risk is borne by the employer;

• Designed to provide a monthly benefit in a set amount for the retiree’s lifetime.

MainePERS administers Qualified Defined Benefit Plans Under 26 USC Section 401(a)


Why is determining membership eligibility and accurate reporting so important?

Employers are responsible for placing employees in the correct retirement plan.

MainePERS uses the information reported to:

• Grant service credit;

• Determine vesting status & eligibility for benefits;

• Calculate the benefit amount your employee receives in retirement


Reporting errors can be costly for Employers, Members, the Plan and/or MainePERS.

When would I call Retirement Services with a question or request for information?

• Is the employee eligible to participate in MainePERS?

• Is this payment earnable compensation for retirement?

• What MainePERS benefits are available to my employee?

• What membership or retirement forms should I submit and/or how do I complete them?

• My new hire is receiving benefits from MainePERS, should I report him as a retiree returned to work ?


MainePERS

Welcome




Defined Contribution Plan- MaineSTART

Employer Services

V3 Update

Financial ReportingClosure

Agenda

Responsibilities

• State Social Security Administrator for Maine

• Administration of MainePERS Plans for its Participating Local District (PLD) Employers:

Joining/withdrawing from MainePERS

Changing a service retirement plan

Adding the COLA provision

Membership eligibility

• Administration of MaineSTART - the MainePERS sponsored 457(b) and 401(a) Defined Contribution Plans

PLD Plan Administration

What is a Federal Section 218 Agreement and does your entity have one?

Social Security – 218 Agreements

Voluntary Agreements for

Coverage of State and Local Employees


Social Security and Medicare

Do your employees pay into Social Security and if so, under what basis?

• Federal Section 218 Agreement All employees pay SS, unless excluded

• Default SS (Section 210)No 218 Agreement but the employer paid SS prior to participating in MainePERS - some employees are grandparented for SS coverage only (no MainePERS coverage)

• Coverage for part-time, seasonal, or temporary employees (P,S,T) employees in lieu of MainePERS.


Social Security and Medicare

For questions about whether or not earnings are subject to FICA (Social Security and Medicare), contact:

Stephanie FecteauState Social Security Administrator for Maine

For questions relating to Social Security and Medicare benefits, contact:

Social Security Administration


MainePERS PLD Plan Administration includes working with public employers on:

• Joining/withdrawing from MainePERS

• Changing a service retirement plan

• Adding the COLA provision

• Membership eligibility

• Employer related issues


MainePERS PLD Employers include:

• Counties, municipalities, quasi-municipal corporations, or incorporated instrumentality of the State or of one or more of its political subdivisions

• Water/Sewer Districts

• School Districts/Charter Schools

• Libraries

• Housing Authorities

• Associations


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.rsi.com/state-agency-solutions/workers-compensation/&ei=8XqdVdjVFYucgwTY54DgCQ&bvm=bv.96952980,d.eXY&psig=AFQjCNF3eevh6AmE7hCaO0V_e5PcO2Qa4A&ust=1436470158735818

MainePERS PLD Plans - StatisticsAs of July 1, 2014

Stand alone PLDs and employers in the PLD Consolidated Plan

Employers 304

Participants 19,019

Benefit Recipients 8,524

Total Funding Ratio 91.2%


Employers may join MainePERS as a new PLD, or change their plan (for existing PLDs) effective January or July 1st of any year by following the process below:

To join the plan, or to make a change, the employer must provide MainePERS with a certified copy of the vote taken to join or change the plan. A ratified collective bargaining agreement is not sufficient.

Joining MainePERS as a PLD, or Changing a Plan


Who has Authority?School Districts vs. School Department as an Employer

Reminder: MainePERS plans and provisions may only be adopted by an employer’s governing body.

School District = Has full authority. A school district is a legal entity.

School Department = Has no authority - jurisdiction is under the governing body of the municipality. The school is a “department” of the municipality, not a separate legal entity.


PLD vs. State/Teacher Retirement ProgramsDifferences in the Programs

• Normal Retirement Age

• Contribution Rates

• Group Life Insurance

• COLA

• Portability/same employer

• Governance

• Social Security Coverage

• Health Insurance


Governance of the PLD Program

• The PLD Advisory Committee Monitors plan funding and recommends annual employer rates to

the MainePERS Trustees Recommends plan design changes to the MainePERS Trustees

• MainePERS Board of Trustees Adopts rates or sends back to Committee for specific concerns Submits plan design changes to the Legislature or sends back to

the Committee for specific concerns

• Maine Legislature Discusses and adopts or does not adopt plan changes


MEMBER: NOMINATED BY:

• David Barrett Maine Municipal Association • Vacant, awaiting appointment Appointed by Governor• Steven Butterfield Maine State Employees Association • Rick Cailler Professional Firefighters of Maine• Rob Walker/Charles Betit Maine Education Association• John Eldridge Maine Municipal Association• Traci Place Teamsters Union Local #340• Janice Kimball Maine Municipal Association • John Schlosser Maine School Management

Association• Sylvia Hebert AFSCME, Council 93• Dr. Thomas J. Ward Maine School Management

Association• Sandy Matheson, Exec. Director Ex-officio, MainePERS


MainePERS PLD Advisory Committee

Re-cap of July 1, 2014 Changes to the PLD Consolidated Plan

• Contribution Rate Increases

• Cost of Living Adjustment

• Normal Retirement Age is 65 for new members of the Consolidated Plan on/after July 1, 2014

• For those with a Normal Retirement Age of 65, age-reduction for retiring early is 6% per year


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://indianausdamortgages.com/2014/01/changes-set-to-take-effect-on-usda-mortgage-program/&ei=_3ieVYXJLYbh-QHA6pu4BQ&psig=AFQjCNHZEG2Ef_-0wRKCf9oHIgzYxKKQFg&ust=1436535383947080

Employer Contributions

• Established each year, based on results of the annual actuarial valuation For copies of Annual Valuation Reports visit:

www.mainepers.org/Employer

• Subject to market volatility Assumed rate of return = 7.125%


How Defined Benefit Funding Works

Member contribution + employer contributions + investment returns - benefit payments = trust fund balance

• Each year, the actuary determines what it costs to provide the benefits earned in the upcoming year (normal cost)

• The actuary also calculates how much will be owed to each member for work through the end of the fiscal year and discounts it back to present value using the long-term investment earnings assumption (7.125%) This liability is compared to the actuarial value of assets on hand to

determine the over/underfunding of the plan (UAL)

• Normal cost and any UAL cost are converted to % to be applied to payroll throughout the year (contributions)

• The employer and employee pay these costs as pre-determined


Responsibilities Recap

• State Social Security Administrator for Maine Employer liaison for coverage and tax issues between the

State, IRS, and the Social Security Administration

• Administration of MainePERS plans for Participating Local Districts Employer liaison


We’re here to help! Should you have any questions, please contact us.

MainePERS

Welcome





Employer Services

V3 Update

Financial Reporting

Closure

Agenda

Disability Benefits

• One of the Benefits available to members of the Maine Public Employees Retirement System (MainePERS) is the Disability Retirement Program.

• Not a supplemental insurance – a retirement benefit.

• Eligible members receive an income benefit and continue to accrue creditable service until they are able to return to employment or change over to service retirement.

Who is eligible for Disability Benefits?

Disability Benefits

• You must be a member and have not received any full refund of contributions.

• You must have a mental or physical incapacity that makes it impossible to do your job.

• The condition(s) must result in permanent functional limitations that makes it impossible to perform the duties of your employment position.

Disability Benefits


• You must meet the terms of your specific disability retirement plan as it relates to any age restrictions or other required provisions.

• You may not have a service retirement and a disability benefit at the same time – you are ineligible for disability benefits after receiving service retirement benefits or if you have refunded your contributions.

Disability Benefits

• At the time you became incapacitated, you must have been on your employer’s payroll and made contributions to MainePERS.


• Job modifications – is your employer willing to make some modifications that would allow you to do your job or provide another position of equal pay and stature?

• You may not be eligible for disability benefits if you have fewer than five years of continuous creditable service preceding your last date in service.

• If you have been incapacitated for more than 2 years, you must meet additional criterion.

Disability Benefits


• You should apply for disability benefits as soon as you become incapacitated, as MainePERS generally can not pay retroactively for more than six months prior to the date of the application.

• Initial Application process takes approximately four to six months.

• You may apply even if you have a pending Worker’s Compensation claim.

When to apply

Disability Benefits

• If you receive Worker’s Compensation or Social Security disability (PLDs who pay into social security) for the same condition as MainePERS the benefit will be offset.

• Employer Report with job description, most recent performance appraisal, report of any disciplinary actions, last 12 months sick and vacation usage and any medical documentation

• Employer Interview – information regarding any difficulties the member is/was having performing job duties, clarification of duties on job description

• Termination/Last day in pay status – vacation and sick leave reporting form and Human Resource Profile (HRP)

Employer Information

Disability Benefits

• This is a Retirement Benefit

• Specific Eligibility Requirements

Summary

Disability Benefits

• For Questions about Disability Retirement or for an application package please call 1-800-451-9800 or visit our website at www.mainepers.org

MainePERS

Welcome


Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits - PLD & Teacher



Employer Services

V3 Update

Financial Reporting

Closure

Disability Benefits

Survivor Benefits

Let’s talk about…

• Who may be entitled to benefits?

• What benefits may be available?

• When benefits may be effective?

Survivor Benefits

Ordinary Death Benefits

Ordinary death benefits are available if, when the member dies, they are:

• In service

• Receiving a disability benefit

• Not in service and have contributions remaining at the system

Survivor Benefits

Designation of Beneficiary Pre-Retirement Death

This form is used to designate a beneficiary(ies) to receive any survivor benefits in the event of the employee's death prior to service retirement.

Survivor Benefits

Types of benefits available to Beneficiaries

• A Lump-sum RefundA lump-sum refund is a refund of the deceased’s contributions and accrued interest.

• A Survivor BenefitA Survivor Benefit is a monthly benefit available based on the number of beneficiaries designated and their relationship to the deceased.

• The Reduced Retirement AllowanceThe reduced retirement allowance is a calculated monthly benefit which uses the deceased’s age, average final compensation, creditable service, and age of the beneficiary(ies) in the calculation.

Survivor Benefits

Accidental Death

Death as a result of an injury arising out of, and in the course of, employment

• Only available to spouse and dependent children

• Offset by Workers’ Compensation received by spouse and dependent children

Survivor Benefits

We talked about…

• Who may be entitled to benefits?

• What benefits may be available?

• When benefits may be effective?

Survivor Benefits

MainePERS

Welcome


Defined Benefit Plan• PLD & Teacher • Social Security / MainePERS PLD Plan- Administration• Disability Program• Survivor Benefits- PLD & Teacher



Employer Services

V3 Update

Financial Reporting

Closure

Agenda


Let’s talk about…

• Who is eligible for coverage?

• What coverage is available?

• When coverage is available?


• Term Life with Accidental Death/Personal Loss

• Enroll without medical screening

• Payroll deduction

• Basic into retirement


StatisticsActive Employees 31,800

Have Supplemental Coverage 10,000

Have Dependent Coverage 7,500

Retirees with Coverage 18,200

Enrollment Eligibility

• Permanent Full and Part Time Employees who work 20 hours or, 2½ normal working days

• Within 31 days of first eligibilityEvidence of Insurability is required after 31 days.

• If employee refuses coverage, still submit the application through ESS.


Welcome Letter

• Coverage they elected and level

• Encourage them to complete a Designation of Beneficiary form

• Direct them to Certificate of Coverage FAQs

• Third-Party Designation form


Levels, Rates, PremiumsWe take the annual compensation you provide, along with the corresponding GLI rate to determine the monthly premiums.

We then generate your monthly bill as seen within ESS.


The Life of the Employee


• May increase coverage

• May decrease coverage

• Leave of absence

• Termination

• Retirement

• Death

Termination of Employment

When you submit a PSC form for a terminating member, MainePERS will offer the participant the opportunity to continue coverage at their own expense.


You CAN take it with you when you go!

Retirees may be able to continue their basic Group Life Coverage into retirement at no additional cost.

This amount is reduced annually on the anniversary of the date of retirement at the rate of 15% per year to a minimum of 40% of the initial amount that continued into retirement or $2,500, whichever is greater.

3-YEAR AVERAGE OF $28,000FROM THROUGH AMOUNT

7/1/2014 6/30/2015 $28,000 (full coverage)

7/1/2015 6/30/2016 $23,800 (85% of 28,000)

7/1/2016 6/30/2017 $19,600 (70% of 28,000)

7/1/2017 6/30/2018 $15,400 (55% of 28,000)

7/1/2018 And thereafter $11,200 (40% of 28,000)


An Unfortunate Event

• MainePERS processed approximately 1300 reported deaths in fiscal 2015.

• Approximately 600 had Group Life Insurance Coverage.

• Response to a reported death is generally less than one week.

• Claims are generally processed within 2 weeks of receipt.


Designation of Beneficiary Group Life Insurance

This form is used to designate or change beneficiary(ies) under the Group Life Insurance Program.


We talked about…

• Who is eligible for coverage?

• What coverage is available?

• When coverage is available?


MainePERS

Welcome





Employer Services

V3 Update

Financial Reporting

Closure

Agenda

Defined Contribution PlanMaineSTART


MaineSTART

This presentation is for information and illustrative purposes only. MainePERS does not provide investment advice or make investment recommendations.

This presentation uses assumptions, including assumptions about rates of return. If these assumptions turn out to be inaccurate, the results will vary.

All investments have risk. Past performance of investments does not guarantee future performance.


MaineSTART

Description PLD Defined Benefit (DB) Defined Contribution (DC)

Employee Contribution 7.5% of CompensationIRS Maximum for 2015 =

$18,000

Employer Contribution 8.9% of Compensation Optional

Contributions and Interest are Federal Tax Deferred

Yes Yes

Contributions and Interest are State Tax Deferred

No Yes

BenefitsBased on average final compensation, years of

service, and age

Based on participant’s accumulated balance

InvestmentsInvested according to

MainePERS investment policyParticipant responsible for

investment election

Investment ResultsAffects funding level of the

planAffects employee’s ultimate

benefit


Why participate in the MaineSTART DC Plan?

• Tax Advantage in Current Year

• Tax Deferred Savings Growth

• Retirement Income

• Simple investment selection

• Low cost funds

• MainePERS commitment to customer service

• Trusted, local manager of your retirement funds since 1942


MaineSTART DC Plan- StatisticsAs of July 31, 2015

401(a) and 457 (b) Defined Contribution Plans

Employers 66

Participants 984

Assets $27,398,316


MainePERS

Welcome





Employer Services

V3 Update

Financial Reporting

Closure

Agenda

• Changing Roles

• Secure Data

• Providing Service You Need

Employer Services

Changing Roles

• Less focus on technical application

• More focus on support and Customer Service Money Data Service

Employer Services

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Rates

Effective with payrolls paid in July - similar to what happens with W2s at tax year end

New Plan rates effective July 1st

Employer Services

Rates

Where can you find the current rates?

http://www.mainepers.org/Employers/Employer_Mainpage.htm

Employer Services



Employer Statements

ER Location: Retirementville

You can view your Employer Statement under the:

Employer Management > Review Payroll Reports, Billing, History & Payments> Documents tab.

Employer Services

Employer Self Service Desktop Technical Specifications

http://www.mainepers.org/Employers/Employer_Update.htm

Employer Services

http://www.mainepers.org/Employers/Employer_Update.htm

Contact & User information

We need your help!

Keeping your contact information up-to-date, allows us to contact you quicker & more efficiently.

• Employer Location Address, Phone, Email

• Contacts Name, Title, Role

Employer Services

Customer Service

One MainePERS reporting contact

Simplifying service for you

Group LifeBilling

PayrollProcessing

Employer Self Service

Employer Services

Employer Training Program

MainePERS offers training for Teacher and PLD payroll and human resources personnel at our Augusta office.

Employer Services

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJDo_eC-3cYCFcWPDQod5iUAUA&url=http://connectingptbo.ca/news/2014/9/11/training-the-workforce-the-employers-role.html&ei=aIGmVZCUKcWfNubLgIAF&psig=AFQjCNGiTe6BmYlw2C5hq_9idLAOJDlHPw&ust=1437061854556224

Employer Training Program

• MainePERS’ Disability• Group Life Insurance• Survivor Benefits • Retirement Services• Employer Self Service (ESS) (forms and payroll reporting requirements)

• Employer Self Service (ESS) (forms and payroll reporting requirements)

Employer Services

Full-day training is an overview of:

Half-day training is an overview of:

Find our Employer Training schedule at:http://www.mainepers.org/Employers/Employer_2015Training.htm.

Our Focus Is On You!

Continues to change . . .

Maintaining data securely . . .

Providing service you need

Contact Employer Services at:1-800-451-9800 ext. 3200 or (207) 512-3200

[email protected]

Employer Services

Welcome





Employer Services

V3 Update

Financial Reporting

Closure

Agenda

Introduce V3 Version 10

Actuarial Link to Financial Reporting

New Financial Reporting Standards

Updating to V3 Version 10

The same software, just a newer version.

V3 Update

Why the upgrade?

• Security

• Performance

• Improved functionality

V3 Update

Implementation MethodologyData Conversion

• Data from the existing V3 version is being staged and assigned storage locations within the new version.

• Data does not need to be converted from one form to another as with the previous implementation from legacy systems to V3.

V3 Update

Implementation Methodology

Vitech, the software vendor, is migrating the existing data into the new version module by module. MainePERS then tests and reviews the results with Vitech for accuracy.

There are over 60 sprints to be conducted!

V3 Update

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.screenmedia.co.uk/blog/2014/08/what-is-agile-development-a-brief-introduction/&ei=88yeVYPcNcOmNs7RgNAJ&psig=AFQjCNEt3azoP_N3_wLB1Fjdth6qlfW_zA&ust=1436556838265304

Timeline and Current Status

Current Timeline:

Kick-off October 2014

First Look December 2014

First Round of Testing March 2015

Second Round of Testing July/August 2015

• In-house Instance Expected Fall 2015

• First ESS Work Scheduled to Begin November 2015

• Anticipated Go-Live Winter 2016-2017

V3 Update

Welcome





Employer Services

V3 Update

Financial Reporting

Closure

Agenda

Actuarial Link to Financial ReportingGovernmental Accounting Standards Board – GASB

Pension Standards Other Post - Employment Benefits - OPEB

Financial Reporting

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Actuarial Link to Financial Reporting

Financial Reporting

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Census Data

Retirement

Date of Hire

Date of Birth

Full-Time Part-Time

Member benefits are calculated based on the data you provide throughout their employment history

The total pension liability is also calculated based on the data provided along with other actuarial assumptions, including the discount rate

Census data must be audited because of the relationship it has on the liability being calculated and now reported

Financial Reporting

The assumed rate of return used to project investment returns over the long term.

Discount Rate

For Funding:

Assumed Rate Established by the Plan Administrator.

What Rate to Use?

For Financial Reporting:

It Depends.

Financial Reporting

Governmental Accounting Standards Board – GASBChanges in Financial Reporting for Pensions

The Governmental Accounting Standards Board (GASB) has approved several new standards that impact MainePERS and many of its participating employers.

• GASB Statement 67: Financial Reporting for Pension Plans

• GASB Statement 68: Accounting and Financial Reporting for Pensions.

• GASB Statement 71: Pension Transition for Contributions Made Subsequent to the Measurement Date.

Financial Reporting

Governmental Accounting Standards Board - GASB

GASB Statement 68: Requires employers who participate in defined benefit pension plans to recognize a net pension liability on their financial statements.

The net pension liability is defined as: “the total pension liability minus the pension plan’s fiduciary net position.”

Cost-sharing employers will report their proportionate share of the net pension liability for the plan as a whole.

Financial Reporting

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Issues to consider with GASB 68:

• Measurement Date vs. Reporting Date

• Schedules of Employer Allocations – Audited

• Employer Specific Liabilities

• Notes and Disclosures

• New Required Supplemental Info (RSI)

• Covered Payroll

Financial Reporting

http://www.mainepers.org/PDFs/GASB/SCHEDULE%20OF%20PENSION%20AMOUNTS%20BY%20EMPLOYER%20FY14_PLD_WEBSITE_UNAUDITED.xlsx


• Special Funding Situations In-kind Revenues

• Agent Employers

• First year implementation Prior period adjustment or restatement?

• Contribution After the Measurement Date (GASB 71)

Financial Reporting

http://www.mainepers.org/PDFs/GASB/SCHEDULE%20OF%20PENSION%20AMOUNTS%20BY%20EMPLOYER%20FY14_SETP_WEBSITE_UNAUDITED.xlsx


It is important to note that the changes being required by GASB are for financial reporting only. They do not change the way contributions are calculated.

MainePERS will continue to work with our actuaries and Board of Trustees on funding policy and contribution requirements.

Financial Reporting


GASB Statement 73: Accounting and Financial Reporting for Pension and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.

Governmental Pension Plans (DB) not covered by GASB 68.

Financial Reporting

Other Post-Employment Benefits - OPEB

GASB Statement 74: Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.(Statement 74 replaces GASB Statement No. 43)

GASB Statement 75: Accounting and Financial Reporting for

Postemployment Benefits Other Than Pensions. (Statement 75 replaces the requirements of GASB Statement No. 45)

Financial Reporting

What to Remember

1. If you are a governmental employer and you participate in a defined benefit plan administered by MainePERS, these standards apply to you. If you are not the person responsible for financial reporting at your employer, please pass on this information.

Sherry Vandrell, Director of Finance207-512-3320

[email protected]

Financial Reporting

2. We didn’t write the standards.

3. We, at MainePERS, are here to help! Should you have any questions, please call us.

MainePERS

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