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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. Objectives: SRP Eligibility and Coding Statutory language Discussion of coverage Who is eligible? Bargaining Contract/ Personnel Plans contribution limits Certifying eligibility/coding processes Resources/reports to help determine eligibility SCUPPS  SEMA4 data transfers Contribution adjustments Resources

  4. Minnesota State Colleges & Universities Retirement Plans Mandatory Plans Voluntary Plans Participation is determined Open to all employees by bargaining unit/employee unit 403(b) Tax Defined Benefit 457(b) Deferred Defined Contribution Sheltered Compensation Plan Annuity Plan TSA Minnesota Teachers 401(a) State Retirement Individual Retirement Association Retirement System TRA Account Plan IRAP MSRS 401(a) Supplemental Retirement Plan SRP MnSCU Retirement Plans

  5. SRP: Statutory Origins • Why do we have SRP? • Minnesota Statutes, Chapter 354C outlines these provisions: • Coverage and eligibility • Salary deductions and matching employer contributions • Additional deductions and contributions as allowed under other law

  6. SRP Coverage • SRP is a MnSCU-specific retirement plan • Coverage by SRP (mandatory plan): • Unclassified position (Administrator, IFO, MSCF, MSUAASF, unclassified MAPE/MMA, or unclassified in Commissioners Plan) • Same as eligibility for IRAP; see classification list at: http://www.hr.mnscu.edu/Classification/UnclassifiedCodes.html • Unclassified “rule 10” positions are not covered by SRP

  7. SRP Eligibility • Service is aggregated across all MnSCU institutions • Service is aggregated across all eligible unclassified appointments • Predecessor entity employment counts: • Former State University System, Community College System, or Technical College System

  8. SRP Eligibility (cont’d.) • Completed two fiscal years of full-time, unclassified eligible service within MnSCU • Exclusive of summer session for faculty • Faculty must have 1.0 FTE or greater • Administrators and professional employees must have an assignment of at least ten months at 100% time within the fiscal year • Unpaid leaves don’t count (with exception of unpaid military leave) • “Once in, always in” • Does not need to be consecutive service

  9. SRP Eligibility (cont’d.) • Retirees are not eligible for SRP coverage • Retirees for this purpose are defined as those who are currently drawing an annuity from a defined benefit plan or those who have started a distribution from their defined contribution plan

  10. SRP Contribution Limits • Statutory language (minimum; M.S.354C) • 5% ee contribution after $6,000 in paid salary per fiscal year  contribution continues until $15,000 is paid in fiscal year • “paid” vs. “earned” concept • 5% er match • $15,000-$6,000 = $9,000 salary payment • $9,000 @ 5% = $450 • Statutory language (maximum) • $2,700 (M.S.356.24)

  11. SRP Contribution limits • Bargaining Agreement/Personnel Plan language determines maximum limit • Maximum limit is $2,700 for ee with a $2,700 er match • Only plan at maximum is MnSCU Administrator’s Plan • Different limits in different fiscal years • List is on the HR web site: http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf

  12. SRP Contribution limits (FY2009)

  13. SRP Coding Processes On each Job Record, there must be: • An effective date • An SRP eligibility code, • And, if eligibility is yes, then • An SRP deduction code

  14. SRP Coding Processes Effective Date Tips: • Newly eligible are always effective July 1st • Correcting or Changing the SRP deduction code for an employee who is already eligible: • Always the 1st day of the June payroll that generates a paycheck on or after July 1st • Example: this year, June 10th is the first date of the June payroll period paid on July 2nd

  15. SRP Coding Processes • SRP Eligibility Codes are available on the MnSCU HR web site: http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Eligibility%20_Codes.pdf • SRP Deduction Codes are available on the MnSCU HR web site: http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP_Historical_Deduction_Rates.pdf

  16. SRP Coding Processes • Review currently eligible employees also: • Compare current deduction code with current bargaining unit, change if needed • Run Reconciliation Reports in Hyperion • Subsequent unclassified job assignments (e.g., switch from faculty to administration, MAPE to faculty, etc.) • Use deduction code for the bargaining unit of the active assignment on October 1 • Any movement after 10/1 does not change SRP

  17. SRP Coding Processes • Multiple active part-time assignments in different unclassified bargaining units • If both assignments are in the bargaining unit, use deduction code for the bargaining unit that has the greater SRP contribution limit • If one or more assignments are in a single bargaining unit, and the remaining assignments are as 218, use the deduction code for the bargaining unit position

  18. SRP Coding Processes SRP Decision Making Flowchart http://www.hr.mnscu.edu/retirement/campus_resources/documents/SRP%20Flowchart.pdf

  19. SRP Coding Processes Special Issues for MAPE, MMA and Commissioner’s Plan employees: • Deferred Compensation Plan employer match or SRP coverage – • cannot have both • Change Salary Authority fields in SEMA4 • Must be changed on both employee Job Data panel and in Position Management • SEMA4: On Demand Reports > Payroll > FIHU1650 MnSCU_DC_Match_Supp

  20. SRP Coding Processes • All data and new coding must go thru SCUPPS to SEMA4 interface process • Follows normal deadlines • Be certain to run and review the HR7010 report

  21. SRP Contribution Adjustments • Missed Deductions must be made up: • Under 60 days old • Over 60 days old; ER must pay for ER and EE contributions plus interest • Under 60 days old, but no future paychecks • All forms are on the MnSCU HR web site • If not paying by electronic fund transfer, • Remittance Voucher form that should be sent with the check, on the MnSCU HR web site

  22. SRP Resources • SRP Step by Step Process, on the web • Hyperion Queries: • Links within the Step by Step Process • Also Reconciliation Reports

  23. SRP Resources • Expand Institutional FTE on Job Panel in SCUPPS, shows multiple institutions • Run the multi-campus report • “Welcome to SRP” letter to newly eligible employees, on the MnSCU HR web site

  24. Module 4: SRP: Eligibility & Coding Questions?

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