In This Issue EMPLOYER Outreach Ohio Public Employees Retirement System • 277 East Town Street • Columbus, Ohio 43215 • 1-888-400-0965 • www.opers.org OPE RS Second Quarter 2007 Proper records retention may save employers thousands The issue of records retention, especially the archiving of exemption records, is getting significant attention these days. To avoid future, and potentially large, financial liabilities, Employer Reporting encourages all employers to review policies and procedures to ensure all important employee documents are retained indefinitely. The simple fact is that employers must keep exemption records indefinitely because former employees may request them at any time during their lifetime. Potential employer liability Here’s why it’s important: If an employee chooses to purchase credit for past service that had been exempted and the employer cannot produce that employee’s signed exemption form, the employer may be liable for: • The employee’s portion of the exempted retirement contribution, • The employer’s portion of the exempted retirement contribution, AND • Accumulated interest. If that sounds expensive, it is. It is also the law. However, if employers have the correct records, this situation is completely avoidable. Likely scenario The situation of requesting to buy back exempted time often occurs with student workers. Frequently, student workers who meet specific exemption guidelines, and who are not thinking of retirement, voluntarily choose to exempt their public service from retirement contributions. It follows that the employer contributions are therefore not required for exempted service. The appropriate documents are signed, approved by OPERS, and returned to the employer. Now, flash forward 25 years. The former employee has had a full and rewarding career in the public sector and is now thinking about retirement. The individual now realizes the importance of the exempted service and has decided to purchase that service to enhance the overall retirement package. There are two potential conclusions to this scenario: • If an employer has the OPERS-approved student exemption form on file, the employee is responsible for the employee portion plus the accumulated interest for the purchase of their exempted service. The employer is not responsible for any part of the cost. • If the employer cannot produce the exemption form, the employee still receives the service credit, but the employer is paying the entire cost. Which scenario would you prefer? Electronic storage is acceptable Employers who have chosen to archive documents electronically can rest easy. If a former employee requests documentation, the electronic archive of the OPERS-approved exemption form will 1 Proper records retention 2 Retirement timeline facts 3 Health Care Update 4 Info to Go 5 Service purchase changes 6 Employer Spotlight 7 Employer Honor Roll 8 Mailbox be accepted provided the OPERS approval stamp is legible. However, claiming that records have been destroyed for any reason, including a fire or natural disaster, does not relieve the employer of the potential liability. Importance of retention No one can accurately predict the future. Employers must archive exemption forms indefinitely to ensure they are available upon request. In short, proper document storage may save employers thousands of dollars in liability.
Transcript
In T
his
Iss
ue
EMPLOYEROutreachOhio Public Employees Retirement System • 277 East Town Street • Columbus, Ohio 43215 • 1-888-400-0965 • www.opers.org
OPERS
Second Quarter 2007
Proper records retention may saveemployers thousandsThe issue of records retention, especiallythe archiving of exemption records, isgetting significant attention these days.To avoid future, and potentially large,financial liabilities, Employer Reportingencourages all employers to review policiesand procedures to ensure all importantemployee documents are retainedindefinitely.
The simple fact is that employers must keepexemption records indefinitely becauseformer employees may request them at anytime during their lifetime.
Potential employer liabilityHere’s why it’s important: If an employeechooses to purchase credit for past servicethat had been exempted and the employercannot produce that employee’s signedexemption form, the employer may be liable for:
• The employee’s portion of the exemptedretirement contribution,
• The employer’s portion of the exemptedretirement contribution, AND
• Accumulated interest.
If that sounds expensive, it is. It is also thelaw. However, if employers have the correctrecords, this situation is completelyavoidable.
Likely scenarioThe situation of requesting to buy backexempted time often occurs with studentworkers. Frequently, student workers whomeet specific exemption guidelines, and
who are not thinking of retirement,voluntarily choose to exempt their publicservice from retirement contributions. Itfollows that the employer contributions aretherefore not required for exempted service.The appropriate documents are signed,approved by OPERS, and returned to theemployer.
Now, flash forward 25 years. The formeremployee has had a full and rewardingcareer in the public sector and is nowthinking about retirement. The individualnow realizes the importance of theexempted service and has decided topurchase that service to enhance theoverall retirement package. There are twopotential conclusions to this scenario:
• If an employer has the OPERS-approvedstudent exemption form on file, theemployee is responsible for the employeeportion plus the accumulated interest forthe purchase of their exempted service.The employer is not responsible for anypart of the cost.
• If the employer cannot produce theexemption form, the employee stillreceives the service credit, but theemployer is paying the entire cost.
Which scenario would you prefer?
Electronic storage is acceptableEmployers who have chosen to archive documents electronically can resteasy. If a former employee requestsdocumentation, the electronic archive ofthe OPERS-approved exemption form will
1 Proper recordsretention
2 Retirementtimeline facts
3 Health Care Update
4 Info to Go
5 Service purchasechanges
6 Employer Spotlight
7 EmployerHonor Roll
8 Mailbox
be accepted provided the OPERS approvalstamp is legible. However, claiming thatrecords have been destroyed for anyreason, including a fire or natural disaster,does not relieve the employer of thepotential liability.
Importance of retentionNo one can accurately predict the future.Employers must archive exemption formsindefinitely to ensure they are availableupon request. In short, proper documentstorage may save employers thousands ofdollars in liability.
to keep the form until the requestedinformation can be confirmed andcertified. However, to permit OPERSto begin processing an interimbenefit, you’ll need to send the…
— Confirmation of Employee’s FinalDay of Service (F-85A), requestingonly certification of the last day theemployee will receive pension-
Tick tock: Retirement timeline facts*
“When should I start the retirementprocess?” Employers are constantlyfaced with that question. To positivelyposition you with all the information youneed to help your employees transitionsmoothly into the next phase of their lives,we’ve prepared a timeline so that youknow what occurs—and when.
The basicsAs a rule of thumb, a simple serviceretirement (one where an employee hasworked an entire career in an OPERS-covered position) takes about 90 days toprocess from day one; in this case, dayone means the first day paperwork hasbeen received at OPERS. A morecomplex retirement could take up to sixmonths to fully and accurately process.However, please know that OPERS willnot leave an employee in the lurch; undercertain circumstances, if an employee isretiring and all the paperwork has not beencompleted, an interim retirement amountcan be generated pending the finalcalculations.
Day-by-day highlights Retirement is an employee-driven event.Everything star ts by the employeeaccessing, via the Internet or by callingthe Member Services Center, theretirement application that’s appropriatefor the retirement plan they’ve selected—Traditional, Member-Directed orCombined. When OPERS receives thecompleted retirement application,retirement processing begins.
• When the completed application isreceived, the funds in the employee’saccount, contributed during theemployee’s career, are earmarked to betransferred from the savings fund intothe pension fund (with more than350,000 active accounts, this is a perfectexample of why timely and accuratereporting is required).
• Within two-three days, OPERS sendstwo letters to employers:
— The Certification of Employee’s FinalPayroll (F-85), a letter asking you to
certify three items:• Final day of earnable salary,• Employee’s final three pay
periods, and • Amount earned in each
of those pay periods.
Many employers are not certain of theabove information when the employeeinitially notifies employers of theupcoming retirement, so we ask you
Quick review on disability retirementsBecause disability retirement usually signals a health issue or unfortunate eventhas occurred, it’s always a jolt to have an employee apply for this benefit. However,public employees are fortunate to have an excellent disability retirement planestablished if the unexpected strikes.
Here’s what employers need to know if a disability retirementevent occurs:
Day oneTo begin the process, the Disability Benefit Application (form DR-1) must becompleted by the disabled employee or the employee’s proxy. This applicationis available via the opers.org Web site, or by calling the Member Services Center.Employers can access this document for a disabled employee, but the employeeor the employee’s proxy must complete the form.
Days 3-5Employers will need to access and complete a Report of Employer for DisabilityApplicant (form DR-4) to initiate or corroborate the employee’s application fordisability. A written job description must also accompany this completed form.This form is available via the OPERS Web site, or by calling the Employer CallCenter.
Days 5-90In processing an application for a disability retirement, the following events willoccur:• An OPERS-appointed, independent examiner must examine the disability
applicant and submit a medical report based on the finding,• The finding of the independent examiner are reviewed by the Board of
Trustees, and are subject to approval/denial,• The Board of Trustees’ decision (approval or denial) is conveyed to the
applicant, or the proxy.
Days 15-25 (this time begins at the day on which all case information hasbeen completed, including Board of Trustees approval)An effective date of disability retirement is established. This is based on the firstof the month following termination of public service, or the date the employeebecame disabled—whichever is later. The first disability retirement check will besent based on the effective date.
Keeping employers informed about healthcare coverage
OPERS Employer Outreach 3
www.opers.org
eligible earnings. Returning thisinformation quickly enables OPERSto begin calculating the benefit. TheCertification of Employee’s FinalPayroll (F-85), is still required tocomplete the retirement process.
• Within the following 5-20 business daysthe soon-to-be retiree’s information, orcase file, is processed. The amount oftime needed here depends on a varietyof factors including the accuracy of theretirement application and the volumeof applications currently pending at theretirement system. As you can imagine,the number of retirement applications
received each month varies greatly andis expected to increase as the numberof baby-boomers retiring accelerates.
• After review, a confirmation letter is sentto the employee that details the plannedeffective date and the plan of payment.
• During the next 70 days, if OPERS hasall necessary information AND if theConfirmation of Employee’s Final Dayof Service (F-85A) has been received,an effective date for the first pensionpayment will be established.
• At that time, the employee/retiree will benotified that 60 days from the effective
date, the retirement benefit will bereceived.
As with most life events, planning makesperfect. As you can see, total time forprocessing a simple retirement is about90 days. We urge you to encourageemployees to recognize the process takestime to be done accurately—and to planfor that time as they plan for theirretirement years.
*Note: This information covers pensionbenefits only for service retirement. Healthcare coverage paper work is not reviewedhere.
We’ve said it before and we’ll say itagain…employers are an impor tantretirement resource for employees.Employers are often the go-to source forimportant retirement questions such aswhen to start planning for retirement(see related article, page 2), and how toget information to smooth the transitioninto retirement.
Because you’re a valued resource, it’simportant you have accurate informationto help your employees. Here are somefacts that you should have ready toshare with all employees whetherretirement is just around the corner, orseveral years away.
No surprises: Apples-to-apples, plans are not the sameMany soon-to-be retirees are surprisedto discover that, although some level ofhealth care coverage is provided inretirement (depending on length ofservice and retirement plan), the healthcare plan is not the same as theiremployer’s plan. The fact that the healthcare plan from an OPERS retirement isdifferent could result in significantdifferences in the co-pays, the drugformularies and how some situations are
handled (those with chronic illnessesmay discover some medical items areno longer covered as a prescription). Weask that employers encourage allemployees to be diligent and review theretirement health care coverage withina year of their planned retirement—OPERS counselors can help with this.
Control your destinyAll employees and retirees need to beaware that their behaviors can helpcontrol the rapidly escalating costs ofhealth care. Healthy habits and lifestylescan contribute significantly to controllinghealth care costs—which will ultimatelylead to extending the solvency period ofthe Health Care Fund. In addition,healthy employees typically becomehealthy retirees who fully enjoy theirretirement years.
Encourage employees to embracehealthy lifestyles now by getting regularexercise, eating right, seeking regularmedical and dental care and, of course,not smoking. Not only will embracinghealthy lifestyles enhance their lives, it’santicipated that healthy lifestyles mayenrich their lives. Some healthy habitsmay be rewarded with financial incentives
in the near future. For example, not onlywill non-smokers receive a preferred ratefor health care premiums, they may alsoreceive an actual financial incentive fortheir healthy choice. Other incentivesare also under review to reward andmotivate those who are actively makinghealthy lifestyle choices.
Be proactiveEmployers need to help employeesunderstand what they need to do tomaximize the health care resourcesavailable. For example, employees needto know what their responsibilities areregarding eligibility for Medicare—insome cases, actually applying forcoverage is necessary. Providing thisinformation to active employees will givethem a big advantage in retirement.
All questions are goodquestionsOPERS has counselors and specialistsavailable to answer employee questionsabout retirement benefits and health carecoverage both in person as well as overthe phone. Encourage employees tocontact the experts with their questions.
OPERS’ComprehensiveAnnual FinancialReport for 2006 nowavailableAll employers are invited to review the latestComprehensive Annual Financial Report (CAFR) nowavailable electronically at www.opers.org. The annualreport has information all employers should knowincluding the latest actuarial reports, information on thefunded status of the system and other post-employmentbenefits (OPEB). Because many employers use theOPERS annual report to complete specific financialstatements and/or their annual reports, the OPERSannual report has been published two months priorto the deadline of July 1.
As tempting as it may be…do not modify formsIt’s important employers realize that modifying OPERS formsis a no-win situation for everyone involved. This applies toforms that are sent via U.S. mail, downloaded from theOPERS Web site, or sent via email. It’s important to realizethat Employer Reporting forms are both extremely specificin requesting the information we’re legally required to captureAND technologically tested so that information can betransferred quickly and accurately.
What happens when employers alter forms and submit? Insome cases, Employer Reporting will perform a manualwork-around, which can result in delays in processing therequested information. In other cases, the form is rejected,which can result in additional paperwork for employers.
In short, altered forms…• Cause increased work for you and for us,
• Increase the chance for inaccuracies in your recordsand in your employees’ accounts, and
• Cause delays in processing..
Clearly, no one emerges a winner.
Please help us, help you. Fill out standard forms asrequested, without alterations, and return to OPERS withinthe timeframe requested.
Remember, OPERS provides a feedback tool for you tocomment on forms that are difficult to understand or areconfusing to complete. Just click on Give us your feedbackon the Employer Forms and Publications page of the OPERSWeb site.
Changes to refundsEmployers should realize that if a refundsituation occurs per taining to servicepurchase reporting, the refund will alwaysbe sent to the employer who will then needto determine tax consequences, if any,and refund the deduction amount to theemployee.
As always, ECS-reporting iseasiestIt’s anticipated that the ECS platform willbe ready to accept Reports of ServicePurchase Deductions electronically withthe November 2007 reports. The electronicReports of Service Purchase Deductionswill be reviewed at the time of submissionso that repor ts can be processedaccurately and on time.
Service purchase changes slatedVery soon, employers will see the first ofseveral changes being implementedthroughout 2007 to the service purchaseprocess. These changes will helpemployers more efficiently and accuratelyprocess service purchases for theiremployees. However, the enhancementsmay require changes to your processesand IT platforms.
To help employers transition to the newservice purchase processes andfamiliarize you with the new forms,Employer Reporting is providing step-by-step guidelines. In July, all employers willreceive a Service Purchase Kit thatincludes:
• Special Edition Employer Notice, withcomplete implementation information,including a calendar,
• Job aid that reviews the new forms,
• Revised Employer Manual pages, and
• File specification documents.
As a high-level overview, here are thechanges employers will see:
• As of the July reporting period, the newRepor ts of Service PurchaseDeductions (form 4710-3) must beused—two editions of this form areavailable, depending on whether theservice purchase deductions are takenon a pre-tax or post-tax basis. As isdone currently, the forms will continueto be pre-filled with employee-specificinformation.
• In addition, new Deduction End codeswill be implemented as of July, when thenew forms are required.
Also in July, new letters about servicepurchases will be generated that areeasier to understand and provide morecomprehensive information.
Your SERVICE PURCHASE KIT enclosed
277 East Town StreetColumbus, Ohio 43215-4642
Service Purchase Kit
Note:This Service PurchaseReporting Kit contains:
• Special EditionEmployer Noticewith an overview(page 1)
• Questions andanswers to help you transitionsmoothly andaccurately to thenew requirements(pages 2-3)
• Important dates(page 4)
• Sample editions ofthe new forms thatwill be used (insert)
• Revised EmployerManual pages(enclosed)
Service purchase payroll deduction reporting changes Who should read this notice Payroll, human resources, and fiscal officers who manage, generate or complete service
purchase payroll deduction requests from employees. Situation OverviewThroughout 2007, changes will be made to processing of the Report of Service Purchase
Deductions (form 4710-3, formerly known as the Back Payment report). Although it’s
anticipated the changes will help employers more efficiently and accurately process service
purchases, the enhancements may require changes to your processes and IT programs.
Therefore, this information is being disseminated now to give all employers ample time to
accommodate these changes. Changes impacting all employers include:• The current paper form employers use to report service purchases will be changed;
you will receive updated forms in the mail. Effective with the July 2007 report, the
OPERS-issued Report of Service Purchase Deductions (form 4710-3) must be used.
For your reference, sample forms have been included as a job aid. The forms are
based upon whether the service purchase is on a pre-tax or post-tax basis.• Also in July, revised letters about service purchases will be generated that are
easier to understand, more comprehensive and will go directly to the individual in
your organization designated to receive communications about service purchases
by payroll deductions.
• Although the Report of Service Purchase Deductions will continue to be pre-filled with
the approved employee-specific information, new Deduction End codes will be required
to be used on the July 2007 report. • If a refund situation occurs (see inside pages for examples) the refund will always be
sent to the employer who will have to determine tax consequences, if any, and then
refund the amount to the employee. Changes impacting ECS-reporting employers: It is anticipated that the OPERS systems will be ready to accept Reports of Service Purchase
Deductions electronically via ECS with the November 2007 reports. And, will be required in
early 2008. More information will follow as these requirements develop.Note for all employers:To eliminate duplication of effort, the service purchase system is designed to take the Pay
Period End (PPE) codes from your regular Report of Retirement Contributions. Therefore,
please realize that any error PPE codes on the regular report will flow through to your service
purchase report.
Please see back for important information
July 2007OPERS
Ohio Public Employees Retirement System • 277 East Town Street • Columbus, Ohio 43215
Employer Spotlight: Where in the world is...From small to large, the Ohio public employer ranks are extremelydiverse; some even impact the lives of all Ohio residents. Thisquarter’s spotlight shines on the Ohio Department of NaturalResources (ODNR).
As a state department, ODNR owns and manages more than590,000 acres of land including 74 state parks, 20 state forests,127 state nature preserves, and 120 wildlife areas. In addition,ODNR has control of 120,000 acres of inland waters; 7,000 milesof streams; 481 miles of the Ohio River; and 2.25 million acresof Lake Erie. ODNR licenses all hunting, fishing, and watercraft inthe state and is responsible for overseeing and permitting allmineral extraction, monitoring dam safety, managing water
Actually, it’s everywhere. Headquartered in Columbus, ODNR owns andmanages some of the most stunning sights in Ohio; here are just a few:
resources, coordinating the activity of Ohio's 88 county soil andwater conservation districts, mapping the state's major geologicstructures and mineral resources, and promoting recycling andlitter prevention through grant programs in local communities.
Number of ODNR employees who are OPERS members:1,500
Mission statement: To ensure a balance between wise useand protection of Ohio’s natural resources for the benefit of all.
OPERS employer since: ODNR was established by the OhioLegislature in 1949.
Where in the world is the Ohio Department of Natural Resources (ODNR)?
Online enrollments will be the highlight for the 2007 Honor Roll:Here’s the listing of who’s earning honor roll status:
EDEC as of January 2007: Here’s a list of employers who signed up for the Electronic Distribution of Employer Communications(EDEC) program. We urge you to make sure your organization is on this list…perhaps as soon as the next quarter?
Keep up the momentum… more and more employers are discovering easy street…via ECS. This quarter’s Employer HonorRoll salutes the employers who have joined the ECS roster since January 1, 2007 Currently, more than 95% of all public employees arereported via ECS. If you’re not on this list…what’s holding you back?
Brown CountyVillage of BalticWillshire TownshipFranklin TownshipLondon Metropolitan Housing AuthorityMeigs CountyVillage of South AmherstBrimfield TownshipVillage of OrwellOhio and Lee Township Water and
Sewer AuthorityVillage of KillbuckNew Lexington CemeteryMillwood TownshipLogan CountySeneca CountyCity of Pepper PikeCity of FostoriaVillage of New BremenVillage of EnonFranklin TownshipVillage of VanlueBern TownshipBlanchard-Dunkirk Ambulance DistrictDodson TownshipMeigs TownshipCarroll CountyVillage of Oak HarborMonclova TownshipSalem Township Public LibraryEden TownshipButler County Transportation
ImprovementMontgomery County Transportation
ImprovementPerry TownshipChatham TownshipVillage of SpencervilleEarnhart Hill Water and Sewer DistrictDover TownshipVillage of BettsvilleLiberty TownshipMifflin TownshipClinton CountyHighland CountyVillage of DeshlerVillage of South ViennaVillage of Lower SalemBrown Township
Village of Meyers LakeVillage of La RueNewport Water and Sewer DistrictWood County Law LibraryCity of Garfield HeightsCity of SalemHamilton TownshipVillage of PattersonNapoleon TownshipIronton Port AuthorityCity of FindlayJefferson Regional Water AuthorityVillage of PolkMarion TownshipManchester TownshipMount Hill Union CemeteryPortage County Airport AuthorityCity of BedfordCleveland Heights Public LibraryVillage of Geneva on the LakeWickliffe Public LibraryVillage of RockfordPerry TownshipVillage of RussiaWVIZ-PBSVillage of PlainfieldPut In Bay Township Port AuthorityCity of MedinaVillage of HamdenAurelius TownshipWoodville TownshipTransportation Research CenterGranville Public LibraryBrown TownshipVillage of WilkesvilleHillgrove Union CemeteryCoshocton CountyHarrison CountyVillage of Fairport Village of TimberlakeMiami Valley Risk Management
AssociatesCity of Saint Mary'sVillage of GlousterNimishillen TownshipVillage of FeltcherFulton CountyScioto TownshipVillage of Gnadenhutten
Ballville TownshipVillage of MagnoliaVillage of MogadoreVillage of Mount PleasantVillage of CorningVillage of Rock CreekBennington TownshipHomer TownshipSandusky Township Sewer DistrictBrown TownshipBenton TownshipBrown TownshipGreenfield TownshipJackson City LibraryAmherst TownshipHocking County District LibraryPleasant Valley Regional Sewer DistrictCardinal Joint Fire DistrictVillage of PerrysvilleColerain TownshipScott TownshipNorthern Ohio Rural WaterMid County Joint Ambulance DistrictVillage of Apple CreekVillage of BradfordBarlow TownshipBethlehem TownshipMarion TownshipVillage of HigginsportPebble TownshipChester TownshipBatavia Union CemeterySand Beach Conservancy DistrictStillwater HospitalCity of North RoyaltonJefferson Metropolitan Housing
AuthorityVillage of PayneVillage of North RandallGoshen TownshipVillage of PiketonGreen Creek TownshipVillage of HolmesvilleFranklin TownshipPerry TownshipHancock County Law LibraryCity of Mentor-on-the-LakeHarpersfield TownshipSterling Joint Ambulance District
Madison TownshipVillage of MilanLe-Ax Water DistrictCatawba Island TownshipClinton-Warren Joint Fire and RescueVillage of FarmersvilleClinton TownshipNewberry TownshipRange TownshipFranklin TownshipCity of North RidgevilleWarren TownshipBristol Public LibraryNew Lyme TownshipUnion TownshipHartsgrove TownshipClinton-Highland Joint Fire DistrictSoutheastern Ohio Port AuthorityGreen TownshipCuyahoga Arts & CultureAdjutant GeneralVillage of Mt. GileadDeerfield TownshipPetermann LLC Busdriver CarryoversPetermann LLC Busdriver CarryoversNewton TownshipPetermann LLC Busdriver CarryoversAndover TownshipCongress TownshipMount Hill Union Cemetery - Medina
CountyPetermann LLC Busdriver CarryoversRushcreek Township Springfield TownshipJackson TownshipVillage of EldoradoPetermann LLC Busdriver CarryoversLake TownshipVillage of Junction CityAlexandria Public LibraryOttawa TownshipHopewell TownshipLicking TownshipVillage of SummitvilleVillage of St. MartinScioto CountyMedina Metropolitan Housing Authority
Lake CountyTrumbull CountyWarren County
Trumbull Metropolitan HousingAuthority
Sherman Twp Huron CountyTuscawaras Metro Housing Authority
Village of AdenaScioto CountyVillage of WinchesterOhio Legal Rights Service
City of Upper ArlingtonRockford Carnegie LibrarySummit CountyCity of North Royalton
BOARDof TrusteesKen Thomas, ChairRepresentative for Municipal Employees
Cinthia L. Sledz, Vice ChairRepresentative for Miscellaneous Employees
Ronald C. AlexanderRepresentative for State Employees
Sharon M. DownsRepresentative for Retirees
John W. MaurerRepresentative for Retirees
Kimberly Ann RussellRepresentative for Non-teachingCollege/University Employees
Helen YoungbloodRepresentative for County Employees
Hugh QuillDirector, Department of Administrative Services
Robert C. SmithGovernor Appointed Investment Expert
James R. TillingGeneral Assembly Appointed Investment Expert
Warren W. TylerTreasurer Appointed Investment Expert
Christopher M. DeRoseExecutive Director
This newsletter is written in plain language for use by public employers who are subject to coverage under the Ohio Public Employees RetirementSystem. It is not intended as a substitute for the federal or state law, namely the Ohio Revised Code, the Ohio Administrative Code, or the InternalRevenue Code, nor will its interpretation prevail should a conflict arise between it and the Ohio Revised Code, Ohio Administrative Code, or InternalRevenue Code. Rules governing the retirement system are subject to change periodically either by statute of the Ohio General Assembly, regulationof the Ohio Public Employees Retirement Board, or regulation of the Internal Revenue Code. If you have questions about this material, please contactthe Employer Outreach Office at 888-400-0965, or seek legal advice from your attorney.
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We're glad you asked! Yes, you can. Toclarify, ECS has three major roles/capabilities:
• Retirement contribution reporting (withautomatic feedback regarding errors tohelp make your report accurate andtimely),
• Online payment: To activate, you mustperform an additional step to enter bankaccount information, although the role isassigned to the delegated administratorupon registration, and
• Online forms: The ability to complete andsubmit forms such as the PersonalHistory Record and alternative retirementplan forms. (Additional forms will be rolledout in the future.)
Therefore, an employer can sign up forECS reporting, but is not required toperform online payment. However, it’sgratifying to note that most employersfind ECS so user-friendly that oncesigned up for one function…they arequickly interested in the other capabilitiesas well.
I’m seriously thinking about signing up for the EmployerContribution System (ECS), but I don’t want to sign up foronline payment—can I sign up for reporting only?
Q:
For significant events, it’s best if employeesnotify OPERS directly via the MemberServices Center at 1-800-222-7377 of anylife-changing event that could affect theirretirement decisions. Marriage and divorcecan have a significant impact on beneficiarydesignations.
In the case of a death, the employee’sfamily or attorney may have to handle thenotification to OPERS by calling theMember Services Center.
Less-important events, such as a changeof address, can be triggered by the
employer or the employee. However,don’t let a change of address slip—youremployees need to receive thepersonalized annual statement eachyear to help plan for retirement.
I want to make sure I’m doing my job. Who contactsOPERS about life-changing events such as marriage,divorce, or death of an employee? Is the employersupposed to do all that?
