BusinessPlus WA DRS Retirement Kim SteMarie

1. BusinessPlus WA DRS Retirement Kim SteMarie

2. Introduction and Overview • Session Overview • PART1 - DRS Employer Responsibilities and IFAS Setup for payroll processing. • PART2 – Transmittal processing

3. PART1 DRS Employer Responsibilities IFAS Setup for payroll processing

4. DRS Requirements When to Report to DRS Each month, employers are required to report information to DRS about each employee who is a member of a Washington State retirement system. This process is referred to as the regular transmittal report. Transmittal reports are due to DRS by the 15th of the month following the month being reported; e.g., the December transmittal is due January 15. If a transmittal report is late, DRS will assess a late penalty fee [RCW 41.50.110(5)]. What to Report to DRS The regular transmittal report must reflect the reportable compensation paid to retirement system members during the month being reported. Compensation must be identified by the month and year in which it is earned. Report compensation as earned, not as paid. (The earning period field allows employers to record when the compensation was earned.) Plan 3 DRS recommends employers send the Plan 3 member contributions and the transmittal report as close to each pay day as possible. This allows the Plan 3 members contributions to be invested as soon as possible. Source: DRS Employer Handbook

5. Employer Responsibilities – School Districts and ESD’s • As the employer, you have responsibilities for accurately reporting retirement data. While regular school district contracts must be created and reported as earned, special reporting is allowed for pay adjustments. • Pay adjustments can't result in a negative impact to a member's service credit. • You must determine if the employee is part-time or full-time. You have less flexibility when reporting part-time employees because additional hours may increase service credit. • You are responsible for documenting the earning periods associated with the payments and hours should DRS need the information. • If the employee terminates prior to the end of the school year, you must adjust the reporting if service credit is impacted. • You must adjust reporting for contribution rate changes. Source: DRS Employer Handbook

6. Full-Time vs Part-Time Full-time If additional compensation and service are paid out equally through the school year, report the adjustment evenly over the working months of the school year associated with the pay using Status Code A. Part-Time (including subs) If there is additional compensation but no service attached to the adjustment and it is paid out equally through the school year, the adjustment can be evenly distributed over the working months of the school year associated with the pay using Status Code A. An adjustment with additional servicemust be reported as earned because the additional hours or days can potentially increase the employee's service credit. Source: DRS Employer Handbook

7. Service Credit Service Credit What Is Service Credit An employee working for you in a position covered by a retirement system earns service credit toward his or her retirement. The amount of service credit an employee earns is based on the time he or she works. For all plans except TRS Plan 1, no more than one month of service may be granted for any calendar month. For TRS Plan 1, no more than one year of service may be granted for any fiscal year. The Importance of Service Credit A member must earn service credit in order to qualify for a service retirement benefit. Service credit is used to calculate the amount of a member's monthly retirement benefit. In order to ensure service credit is recorded correctly, employers must report hours or days of service to DRS each month. Source: DRS Employer Handbook

8. Reportable Compensation What Is Reportable Compensation? Reportable compensation is the portion of salary or wages you pay to your employees that is used to determine retirement system contributions. It is also the compensation used to calculate retirement benefits. Not all salary or wages are reported to DRS. Source: DRS Employer Handbook

9. Status Codes Status Codes - Status codes determine the service credit and retirement benefit to which a member is entitled. • use only one status code per transmittal line. If more than one status code is needed, use a separate line for each code. See DRS Employer Handbook for listing of status codes

10. IFAS SETUP Resources www.sungardps.com “IFAS INSIDER” client website • State Regulatory Guide • Common Code Guide • HR Users Guide • Personnel Guide • Payroll Guide • DRS Setup Guide

11. License and install Querix(SunGard task) • Insight installed on all Payroll User’s workstation and production and TEST servers (Client) • WA DRS ModuleInstalled and activated on Production and TEST account. (SunGard task)

12. IFAS Setup 1. Create and Define DRS Contribution and Deductions “CDH’s” • Create deduction definition in PYUPDD for each plan • Create contribution definition in PYUPCC for each plan • Create adjustmentdeduction definition in PYUPDD for each plan • Create adjustmentcontribution definition in PYUPCC for each plan.

13. IFAS Setup 2. Create Hour Codes and Reportable Direct Contributions PB7 Reportable Pay to DRS HB16 Reportable Hours to DRS Switch 17 DRS Status Code (e.g. “A”) Switch 25 DRS type: “Y’ if deferred type CDH Switch 26 “E”arned /“Paid”

14. IFAS Setup 3.Load Standard Calc Codes to automatically calculate the DRS deduction and contribution for reportable pay at correct plan rate. • Maintained by SunGard and updated as needed State Regulatory Requirements

15. IFAS Setup 4. Setup Plan Definitions (PYRERRWA07)

16. Setup Rate Tables (RETWARAT) Plans 1 and 2 IFAS Setup

17. Setup Rate Tables (RETWART3) – Plans 3 IFAS Setup

18. 7. Setup Common Codes TDHR/ RETWA TDHR RETWA1 TDHR RETWAIMG TDHR RETWAPYA PYFG/PY335C See SunGard Common Code Guide or DRS Setup Guide for information IFAS Setup

19. IFAS DRS TRANSMITTAL PROCESSING OVERVIEW PART 2

20. IFAS DRS TRANSMITTAL PROCESSING IFAS Processing Steps OVERVIEW 1. Setup Employee Master in IFAS Human Resources (HREMEN) 2. Setup the Employee Pay Assignment in HR and SEND to Payroll (HRPYPA) 3. Setup DRS Member Screen (PYRERRWA01) 4. Run Retro Utility (PYUTRTRP) to create the RETRO batch of retroactive earnings and pay by date, hours, hourly rate and amount. 5. Run Patch By Payline (PYTCDTPT) to create the PATCH batch of Earnings by date, hours, hourly rate and amount. 6. Run Force Calculation #1 (PYPAFC) to read the patch batch and generate the SYSTM batch (which is used by DRS) 7. Run DRS Payroll Extraction (PYRERRWA02) to sort SYSTM timecards into reporting month + calculate the contribution and deduction amounts to be used for payroll calculation. 8. Run Force Calculation #2 (PYPAFC) to calculate net pay 9. Distribute and Pay the Payroll (PYPADP) 10.Create DRS File Image (PYRERRWA04). 11.Edit DRS File Image (PYRERRWA05) 12.Create File to Send (PYRERRWA06)

21. IFAS DRS TRANSMITTAL PROCESSING 1. Setup Employee Master in HR. Payroll Employee Definition is updated (this is the DRS address)

22. IFAS DRS TRANSMITTAL PROCESSING 2. Setup the Employee Pay Assignment in HR and SEND to Payroll to derive the Total Contract Value (earned vs pay). (See PY Contract Users Guide for more information)

23. IFAS DRS TRANSMITTAL PROCESSING 3. Setup DRS Member Screen (PYRERRWA01)

24. Run Retro Utility (PYUTRTRP) to create the RETRO batch of retroactive earnings and pay by date, hours, hourly rate and amount. 5. Run Patch By Payline (PYTCDTPT) to create the PATCH batch of Earnings by date, hours, hourly rate and amount. IFAS DRS TRANSMITTAL PROCESSING

25. 6. Run Force Calculation #1 (PYPAFC) to read the patch batch and generate the SYSTM batch (which is used by DRS) IFAS DRS TRANSMITTAL PROCESSING

26. 7. Run DRS Payroll Extraction (“PYRERRWA02”) The extraction process reads DRS related payroll information by earning period (month), and stores it in a table (RETWAHST) for use in transmittal file creation. It also updates the Employee Master Associated Detail with DRS plan information needed for the standard DRS deduction and contribution calc codes. Any hour which adds to the retirement pay base will be counted as DRS reportable earnings. DRS Status Code for the earnings Payments Deferred amount Previously reported amount Contribution amount Deduction amount Days Hours System and plan EXAMPLE EXTRACT (terminal mode 7.9.3) IFAS DRS TRANSMITTAL PROCESSING

27. IFAS DRS TRANSMITTAL PROCESSING View Extraction Summary (“PYRERRWA03”) • Subset of the information contained in the Extraction Report (PYRERRWA02). The information contained in this screen gets deleted and recreated when the extraction is run. For field information please refer to the column descriptions on the extraction report.

28. IFAS DRS TRANSMITTAL PROCESSING 8. Run Force Calculation #2 (PYPAFC) to calculate the DRS contribution and deduction (based on the Employee Master Associated Detail DRS information) Payroll History Report (PYREEL)

29. IFAS DRS TRANSMITTAL PROCESSING 9. Distribute and Pay the Payroll (PYPADP) • Create Paychecks • Update accumulators (YTD) • Update contract accumulators (Escrow) • Create Registers • Post to the GL

30. IFAS DRS TRANSMITTAL PROCESSING 10. Create DRS File Image (“PYRERRWA04”) The file contains six different types of records: 1. Member Profile Record (Type "M") 2. Employment Information Record (Type "E") 3. Defined Benefit Record (Type "B") 4. Defined Contribution Record (Type "C") 5. TRS/SRS Plan 3 Transfer Record (Type "T") 6. Summary Record (Type "S") 11. Edit DRS File Image (“PYRERRWA05”) Once the file image has been created, the user has the option to edit the system-generated fields in each record.

31. IFAS DRS TRANSMITTAL PROCESSING Member Profile Record Name Change Flag: Set to “Y” if there is a difference between the current name in Payroll and the last file sent to DRS Address Change Flag: This is set to “Y” if the address in payroll does not match the last address sent to DRS.

32. IFAS DRS TRANSMITTAL PROCESSING The Employment Information Record Eligibility Start Date: This is the Enrollment begin date of the Employee in the current System and Plan. This date will only be sent to DRS once and is only shown if the software detects that the date has not been transmitted yet. Eligibility End Date: This is the Enrollment end date of the Employee in the current System and Plan. This date will only be sent to DRS once and is only shown if the software detects that the date has not been transmitted yet.

33. Defined Benefit Record The employee will have a Defined benefit Record for each earning period in the reporting period AUGUST 1 DAY  SEPTEMBER 21 DAYS IFAS DRS TRANSMITTAL PROCESSING

34. IFAS DRS TRANSMITTAL PROCESSING Other Screens • Summary Record (total of all records) • DRS File History Listing • DRS Total Values by Period

35. IFAS DRS TRANSMITTAL PROCESSING 12. Create File to Send (“PYRERRWA06”) • Once the file image has been created and any edits made, the file is ready to be created and sent to DRS. When the process completes, a file with the file name specified will be created in the data directory. The process reads what it finds in the image, and creates the "physical" file that is then, ready to send.

36. IFAS DRS TRANSMITTAL PROCESSING Utilities PYRERRWA10 - Delete File Images: This utility will ask for a File Image name and will show a count of all records associated with that file name. The utility will ask whether the user wants to delete all records and if confirmed will do so. PYRERRWA11 - Investment Manager Summary: This utility/report will show a breakout of the defined contributions for TRS 3 employees by Investment Manager. The report has two modes based on whether the user wants to see detail or not. If the question is answered to show detail the amounts for each employee will be displayed to the screen ordered by investment manager. If the user doesn't want to see details it will show grand total amounts per Investment Manager. PYRERRWAUTHS - Delete Bad System Timecards: This utility will remove all system timecards that do not have a corresponding paid history record. This is necessary to report correct retirement earnings. Note: When reversals are done this utility should be run on the original and new periods. PYRERRWAUTUS - Update Summary Record in File Image: This utility will update the summary record in a given file image. If you make corrections to any of the file images that affect total amounts reported in the summary record it becomes necessary to run this utility which updates the 'S' record in the specified file image. The utility takes the reporting period and filename of the file image as input. PYRERRWAUTSN - Changes SSN of Employee that was reported incorrectly to DRS. This will update the M, E, B, C and T records found in option 5 and the RETIREWA Screen (PYRERRWA01). PYRERRWAUTBF - The balance forward utility runs a special extract that in addition to its normal features also writes total earned and reported amounts to the retwa_reported table (mask PYRERRWA05 - screen RETWARPT). The amounts in the retwa_reported table are then used as starting point for the extract up to the starting period that is contained on the retirewa (PYRERRWA01) screen. The starting period on the retirewa screen is populated when the utility is run and corresponds to the DRS period that is entered when the utility is ran. PYRERRWAUTDH - This utility will delete all extracted information from the retwahst table. This table stores the calculated information from the extract for the create file image (PYRERRWA04) process to use. It would be necessary to run this process if you plan to report a subset of employees in a reporting month that has already been extracted for a different group. PYRERRWAUTSP - This utility is for updating the starting period located on the RETIREWA screen (PYRERRWA01). It will allow the user to update large numbers of employees based on selection criteria entered by the user.

37. Questions?