ORS/VOYA Small Steps Program – increases Employee457 (DC/PHF) contribution 1% each year

  • Automatic 1% Increase in Employee Contribution every year, until you reach 10%
  • Window of time to change percentages back, or opt out completely (must be done every year)
  • Employees eligible for 1% increase need all the following attributes:
  • Eligible for a DC component (Plan Type = “QP” on Grid)
  • Employee Contribution < 10%
  • Active on the VOYA database (i.e. no DC term record has been sent)
  • A contribution has been made (i.e. pay deduction), since 1-1-2016
  • Exception: All Opt Outs (0%) are eligible

Notes

  • Will affect ~ 20-30% of districts’ active employees, starting in January 2017
  • Wayne RESA: 283 employees paid since 1-1-2016, 51 have DC component, 2 excluded
  • Dearborn: 2811 employees paid since 1-1-2016, 848 have DC component, 11 excluded
  • Will affect budget if Employees are not at the maximum employer match (minimal)
  • Query to give you an estimateof who/how many are affected (assumes no one is above 10%).

Will also indicate employees that may need to be terminated (haven’t been paid since 7-1-2016)

After selecting “Press to Set”, pull all plans over using >, then send back the ones on the left using <

  • Query to indicate who is being excluded from the 1% increase (already > or = to 10%)

Communications your employees have already received

In the June 30th, 2016 Pension Plus Statement, employees were alerted to the automatic rate increase to be effective during January, 2017. Online and mailed statements had the following message:

Employees also received a postcard from ORS in mid-October, explaining the program further.

ORS Intends on:

  • Providing another communication to the employee in mid-November, that:
  • Explains the campaign, their current percentage, and their future percentage (?)
  • Explains the window of time to change the percentages (~12/5/2016 to 12/16/2016)
  • Indicates a unique website address and ID to log in and make percentage changes, if you don’t want to participate in the automatic increase
  • Providing a preliminary listing as of 10-17-2016, of all employees eligible for the 1% increase. This list will be available on the DEG in mid-November, and was requested by districts who wanted to get their own communication out to employees affected. Note: Don’t use this list unless you “clean it up” for termed employees. Let’s discuss.
  • Providing a final listing (via a DC Feedback file on 12-29-2016) of those employees affected. Employees who opted back down (or out) will be dropped off the preliminary list. The effective date of the increase will most likely be the 13th or 20th of January, for those districts who pay on Fridays. The DC Feedback file contains only the last 4 digits of the SSN, so loading of data will require adding on the employee # onto an export, or changing records manually.

Payroll Person’s TO DO List:

  • Determine if you will send out your own communication to employees – used cleaned up DEG list, or use queries above to create your own lists
  • Devise a strategy to change the CYBORG percentages:
  • Once the 12-29-2016 DC Feedback File is received, note the effective date of the increases (it will be shown on the Feedback File)
  • Will you do manual changes or use HED manager (will need to add employee #s)
  • Do you need extra hours to complete it (over the holiday break)?

DTL4 TERM RECORDS (AUTOMATIC)

When an employee terminates, a DTL4 Termination Record is supposed to be submitted to ORS for employees eligible for a DC/PHF component (DTL4 record). This termination record is then forwarded to VOYA, so an employee can move their investment money to another investment house.

Until now, there was no automatic process to create these DTL4 Term records. Starting 11-7-2016, the SMART ORS Text File creation programming has been enhanced to automatically create DTL4 Term Records:

  • During each ORS text file creation, the SMART database will be scanned to search for employees satisfying ALL four requirements below. If satisfied, a DTL4 term record will be created and added to the text file, and the employee will be “marked”, as having a DTL4 term record sent.
  • Term Dates > 1-1-2016 and
  • Plans Eligible for DTL4 records – see Grid
  • Plan Type = QP or
  • XRT = C,A,G,J,F,V,Q,S,T,U,H,K,L,3,4, and
  • No other DTL4 record submitted this pay and
  • Term Record not previously submitted
  • If an employee rehires after a DTL4 term record has been previously submitted, the employee will become “unmarked”. If they terminate a second time, a new DTL4 term record will be sent at that time.
  • NOTE: If your district has already been religiously sending up DTL4 term records for every termed employee with a DC/PHF component, you may want to use a starting point other than 01-01-2016. If so, email me by Friday at 3:00 pm with your district identifier, and the start date. For example: WA, 11-01-2016.

ORS PAYROLL AUDIT FINDINGS

  • Retirees not being reported at Gross
  • Our programming reports H310 vs H000. New Pay Validation Edit coming. Not many affected.
  • If Retiree has all pay going to H300’s or H400’s, you still need to report H000!
  • Payoff Agreements over time for Retirees need to be reported, and goes against their 1/3 FAC!
  • $30,000 Unused Vacation paid out within 30 days of retirement – not reportable
  • $30,000 Unused Vacation paid out $10,000 per year for 3 years – reportable in years 2 and 3, and also in year 1 if after 30 days post retirement
  • Workers Comp recorded incorrectly (amounts to “make whole” being recordedincorrectly as 8000 class code)
  • Final Audit Report for 2014/2015 will be released within a few months
  • 2015/2016 Audit will NOT be the whole State – a sampling of ~100 schools on a rotating basis.

WORKING AFTER RETIREMENT VIDEO

  • 32 minute video, segmented into several sections
  • How to look up retirees on the Member Benefit Link
  • How to use the ORS Retiree Decision Tree
  • How to Pick Retirement Plan Class Code
  • How to do retroactive adjustments
  • Video refers to retirees paid since 1-1-2016
  • For 16/17 fiscal year, look at:
  • Every retiree paid since 7-1-2016
  • Every retiree as they are rehired to work for the district
  • Link is:

How to Have no DTL4 Adjustments for XRT = L from the first paycheck

  • The day after the DTL1 posts (i.e. the Monday after a Friday paycheck), process the election form, or
  • Before file is accepted, change the wage code 01 to a wage code 06 for the DTL4 record. This will suspend the DTL2 and DTL4, but will allow the DTL1 to post.
  • The day after the DTL1 posts, process the election form, and change the wage code 06 back to an 01.
  • The next day, the DTL4 record will reflect a “calculated” amount and rate of 6%, 3%.

New XRT Plan Codes for Students and Board Members

  • Students: Plan Code 8
  • Board Members and Other Exempt: Plan Code 9