NAD Human Resources. Retirement Issues

Transcription

1 NAD Human Resources Retirement Issues

2 Policy Changes Effective 2010 Mandatory Lump Sum Payout Church Plan Less than 5 pre 00 YSC, Mandatory Payout 5 or more pre 00 YSC, Mandatory Pension Hospital Plan If $25k or less, Mandatory Payout Above $25k, Mandatory Pension No More option

3 Policy Changes Effective 2010 Survivor Benefits (Z 20 25) Survivor of vested employee is eligible for benefits at age of deceased No shared service requirement only married 1 year requirement 50% of J&S rate plus applicable Sp Allowance Survivor Benefit is Subject to Early Retirement Reductions if Survivor Elects Benefits to Commence Before Normal Retirement Age of Deceased

4 Service Credit Pre-Certification For Those Nearing Retirement who want Assurance of: Healthcare Eligibility & Earned Credit Level Early Retirement Healthcare (40 YSC) Early Retirement without Penalty (40 YSC) Spouse Allowance Eligibility (10 pre-2000, 20 total) Recovery of Lost YSC (normally 25 YSC)

5 Service Credit Pre-Certification Employer: Downloads Service into Benefits Calculator Completes App & Service Analysis Tabs Uploads Calculator to Retirement via eadventist Personnel Faxes Manual Service Records, ITR action, Military Documentation, Grad Study Documentation to Judy Beers Requests Certification, Referencing Calculator & Documentation

6 Service Credit Pre-Certification Retirement: Evaluates Service Credit Clarifies Outstanding Issues Issues Certification of Existing Service Credit

7 Things That Help Us! Complete Applications Retiree Contact Information Service Record Review Divorced Retirees, QDRO/Decree Witness Officer or Notary Our Backlog Gets Better!

8 Things That Help Us! Y N Maybe See attached memo Update DC Years EMPLOYING ORGAN SOMETHING IN EACH Error! Y or N Only! Joint & Survivor If married, do you waive the Joint & Survivor benefit and select the Single Life benefit? (Y or N) If Married, how many of your pre-2000 church (not hospital) years of service credit were you married to current spouse? 0.00 Enter pre-2000 CH/Ca Spouse Allowance Are you applying for a Spouse Allowance? (Y or N) Eligible Error! Y or N Only! Is your spouse receiving benefits from an Adventist Retirement Plan? (Y or N) Error! Y or N Only! Will your spouse qualify for benefits from an Adventist Retirement Plan in the future? (Y or N) Error! Y or N Only! Is your spouse receiving retirement benefits from ANY employer including non-denominational? (Y or N) Error! Y or N Only! If "Y", what is the monthly amount? $0.00 Enter Amount if Avail

9 Things That Help Us! Spouse Allowance Issues Sunset Clause 12/31/2014 Requires 20 total years Must have had 10 prior to freeze Any employer-provided pension or DC accumulation is counted against the SA

10 Things That Help Us! Service Records Electronic SR Printout Signature Expected Term Date future year, write it in. If no DC service, no electronic SR is required If no DB service, no application is required

11 Things That Help Us! Retirement Allowance LTD May Be Eligible for RA See Special Exceptions & 36-month rule Termination of Active Employment clause 36-month clock starts at end of DC Contributions DC Contributions go for 18 mo s including elimination period Retiree may wish to take early retirement in order to meet the 36-mo requirement for RA.

12 Things That Help Us! Retirement Allowance Rollover to ARP Post-1999 portion, use Salary Reduction Agreement. Pre-2000 portion, use Rollover form. Both are in Application Form Retirement Allowance Election of Method of Payment - Pre 2000 Benefit Not Required I hereby elect the following method(s) of payment for my Retirement Allowance distribution(s) from the Plan: Name of Plan: % to be Paid Directly to Retiree: 0% Account Number: % to be Rolled Into a Tax Deferred Plan: 100% Address of Plan: Total (Must equal 100%) Type of Plan: TSA, IRA, Other? 100% Plan Contact Name & Phone # --- > The Plan named here is an eligible individual retirement account or individual retirement annuity established in my name, or a qualified defined contribution retirement plan or annuity plan which accepts direct rollovers. I acknowledge that all amounts paid to me from the Plan, and NOT paid directly to a qualified taxdeferred plan are subject to a Mandatory 20% witholding for Federal Income Tax for the Pre-2000 Retirement Allowance. Retiree Signature: Date:

13 Things That Help Us! Retirement Allowance Based on full-time remuneration of month benefits are to begin. Topped up to full-time for part time employee. Retirement Allowance Authorization Not Required Basic Monthly Wages, OR We, the employer recommend that the Plan pay the Retirement Allowance indicated. We authorize the Plan to bill us for a contribution equivalent to the Bi-Weekly Wages $2, $4, amount paid. We will pay the portion of the Retirement Allowance earned after 1999 directly to the employee. Plan Provided Retirement Allowance $16, Sharing Church Employer: Employer Provided Retirement Allowance $4, Percentage other employer is responsible for: Total Retirement Allowance $20, NAD Retirement ID# Authorizing Employer: Creative Conference Batch Date Authorized Signature: Creative Conference %

14 Things That Help Us! Supplemental Healthcare, Adventist Retirement Plan (SHARP) No Earned Credit for pre-65 Retirees (Unless 40 years of service credit including DC plan) They must pay personally or wait until age 65 Age 65 creates Open Enrollment for SHARP and Retiree is eligible for Earned Credit At Age 65, they MUST contact SHARP for enrollment. Failure is NOT AN Option! (301) , or

15 Things That Help Us! Insurance Conversion Option Employer MUST explain conversion option for life insurance. Window is limited. Suggest retaining copy of this signed affidavit Insurance Conversion Option Not Required I understand that the NAD insurance contracts provide me with the right to continue or convert personal insurance coverages that were provided for me or that I paid for, and have discussed these options with my employer and have taken the necessary actions. I understand that the time window for taking such action is limited. (See Retirement checklist at: Retiree Signature: Date:

16 Things That Help Us! Post-Retirement Employment DB Policy prohibits full-time denominational employment for a plan beneficiary. Part-time (75% or below) is allowed without informing us. If above 75%, longer than 3 months, inform us and we suspend benefits including healthcare. OK to work for non-participating employer 75% = Expected time Not pay See In-Service Dist. Disclosure Inservice Distribution Disclosure Required I understand that if I accept full-time denominational employment for an organization participating in the Church Retirement Plan while receiving monthly retirement benefits from this 'frozen' DB Plan, NAD Policy requires the Plan to suspend my church-plan retirement benefits, including healthcare if any, until such time as I terminate or reduce from full-time to part-time. I understand that the plan defines part-time as 75% or less of full-time work expectation for my particular assignment. I accept responsibility to inform the Plan immediately if I begin such employment of over 75% of full-time denominational employment other than on a temporary (3 months or less) basis. Retiree Signature: Date:

17 Things That Help Us! Security: NEVER include a SS# in an e- mail. Give name and part of SS# Xxx-xx SHARP Booklet is available at > HR > Downloads All employees approaching retirement should receive a copy

18 The Benefits Calculator Where to get the Calculator? eadventist Personnel Reports How to Use the Calculator? eadventist Personnel Reports Why to Use the Calculator? It is the way to apply for benefits! Estimate Letter

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20 Church Benefits Effective Date: January 1, 2009 Estimated Benefits Hospital Benefits Effective Date: June 1, 2008 Estimate Based on 2008 Benefit Rates Church Hospital Total* Years of Qualifying Service Credit Single Life Benefit $ $ $ Less J&S Reduction (If selected) $ (72.31) $ (14.94) $ (87.25) Spouse Allowance (If eligible) $ - $ - $ - Early Retirement Reduction $ (16.27) $ (16.27) Note: Reduction for Early Retirement =2.50% Total Monthly Benefit $ $ $ Accrued Pension Supplement $ - $ - $ - Plus Medicare Part B Reimbursement $ $ Less S.H.A.R.P. Net Contribution (If Calculated) $ (40.00) $ (40.00) Monthly Benefit before Tax Withholding (if any) $ * 'Years of Qualifying Service Credit' above does not include 8 Defined Contribution or 0 Canada Service Credit. Total years = 38 years. $ $ One-Time Lump Sum Retirement Allowance - Employer Provided: $4, One-Time Lump Sum Retirement Allowance - Plan Provided: $16, Estimated Survivor Benefit, Joint & Survivor: $ $67.25 $ Estimated Survivor Spouse Allowance (if eligible): $0.00 $0.00 $0.00 Estimated Survivor Spouse APS (if eligible) $0.00 $0.00 $0.00 Less Survivor S.H.A.R.P. Net Contribution ($20.00) $0.00 ($20.00) Total Estimated Survivor Benefit $ $67.25 $ Estimated Death Benefit $1, $1,390.63

21 Retirement Estimates Use Benefits Calculator Ask for expected date Application Tab Multiple dates? No penalty retirement Healthcare Assistance Earned Credit Download Service Record from Personnel Update DC Plan to future assumptions Today s Dollars don t try to project Print Estimate Letter For Each Scenario Not DB Benefits Tab Save for Future Application

22 Independent Transferees (ITRs) Major Delays in ITR Applications Missing NAD/GC Determination Letter Delayed Response from Home Division To Make These Easier: Know your ITRs Ask for ITR Determination Letter, for file If Vested, Retiree must contact his/her home division and apply. Include this info in ap.

23 DC Contribution Rates 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 0% <3% 3%+

24 Contribution Champions 100% EE Contributions Chisholm Trail Academy Lake Union Conference Mid-America Union Conference NAD Evangelism Institute Saipan SDA Clinic Southwestern Union Conference Sunnydale Academy

25 The Other End 22 Employers over 30% Non Contributors 9 Conferences 7 Academies 2 Colleges 4 Others What To Do? ID the Miscreants Make sure they Understand & have Opportunity to Sign Up

26 Adventist Retirement Plan Human Resources Conference April 2010

27 DC Operations Contribution Rates 11 by 11 VALIC Representatives Leigh Knight Contacts Educators 10 month educators & contributions Seminars & Workshops Guided Portfolio Services

28 Payroll Center Support Teams Local IT ARP IT Treasury ARP Payroll Center Human Resources

29 Outline Contribution limits testing Forfeitures Vesting/eAdventist New webinar coming soon DC Plan Basic Training/Boot Camp

30 Contribution Limits Annual limits testing (415(c)) Challenges Inconsistent wages reporting (YTD/per pay period) Lack of wages reporting Parsonage allowance reporting First 2009 test run $1.8 million excess contributions for 66 out of 132 payroll centers Responsibility: Employee/Online Limits Calculator Employer/Multiple Vendors Reporting Requirements Changes for Employers Federal taxable wages must be reported year-to-date Federal taxable wages must be net of parsonage each upload Year-end zero clean-up file required of all employers Remember to zero out federal taxable wages in Jan each year

31 Forfeiture Forfeitures Status codes Failure to send through T (termination codes) timely Vesting Need accurate dates & status codes to calculate Currently batch of over 900 past employees without matching SSN/names in eadventist to determine vesting (with $626,000+ possible forfeiture funds)

32 Vesting/eAdventist eadventist Need to enter information at time of hire (not at year-end) Vesting for DC plan different than DB plan 10-month educational contract employees dates must be for period of vesting (i.e. 12 months) Local hire/courtesy employees receiving employer contributions MUST be entered into eadventist SSN accuracy Name must match SSN card

33 New Webinar Coming Soon DC Plan Basic Training/Boot Camp

34 Reconciliation Issues Mistake of Fact Over-Contribution Errors Negative Contributions Recovery Download form from Forfeitures Unvested Terminations Re-employment Web Cash Concentration Web based It s Free for You and Cheaper for Retirement

35 Other DC Issues Roth 403(b) Permissive, Not Required Where Appropriate All contributions subject to same limits Limits Testing Target Maturity Funds SDA Funds auto pilot 59 ½ In-Service Distribution Status Cleanup Active, Retired, Terminated, Deceased, Disabled Forfeitures, Loans, Withdrawals Vesting, etc

36 Features Service Records Service Record Year End Log Service Records - all employees Employee Profiles - all employees Employee Address Labels Credential Download New! Download RA Accrual Listing User Changes

37 R LastName FirstName Birthdate SCredit Smith David 2/22/ Smith David 1/18/ Rank by DOB Draw Line per Auditor Requirement Estimate RA Smythe David 1/22/ Smithers David 9/16/ Smothers David 8/7/ Smithereen David 3/23/ Smitheroon David 9/7/ Smoot David 11/4/ Smootie David 6/14/ Smooter David 5/17/ Smooty David 4/4/ Snithers David 1/21/ Snithereen David 6/16/ Snythe David 11/2/ Snyther David 6/27/

38 Retirement Allowance Accrual Tool Cut & Paste from eadventist Download Calculated Enter Calculated Post 99 Exp Total Age At Exp Post-99 Annual Total Exp Multiply Total YE LastName FirstName Birthdate SCredit Post99 12/31/ /31/2009 Remun. Remun. RA RA Factor Accrual Smith 3/2/ $44, $3, $ $ 5, % $ Smorthe 10/12/ $32, $2, $ $ 4, % $ 3, Smooth 5/22/ $66, $5, $ $ 7, % $ 7, Snitty 8/3/ $12, $1, $ $ 1, % $ Snorty 12/29/ $44, $3, $ $ 9, % $ - Snootie 3/6/ $44, $3, $ $ 9, % $ Spritter 5/3/ $52, $4, $ $10, % $ 1, Sprittee 7/1/ $38, $3, $ $ 3, % $ 3, Sprytlee 6/2/ $38, $3, $ $ 6, % $ 3, $ 20,459.79

39 Wrap Up Service Records See E70 New Employee Hire & Enter No Record Required for only: Temporary Employees Student Labor at Educational Institution Auxiliary payroll employees w/o participation doc s Pre-Retirement Seminars New Employee Enrollment SRA & Video

40 Wrap Up Retirement Process Oregon Conference Questionnaire Application Form Retiree Adoration of GC Process I just worked through the application form!

41 Questions?