FREQUENTLY ASKED QUESTIONS

EMPLOYERS

1. What type of retirement plan is Teachers' Fund for Retirement (TFFR)?
2. What types of salary are reportable to TFFR?
3. If I have a teacher that leaves half way through the year, when do I report the last date worked and compensated hours?
4. I have a member that is contracted for 180 days for 8 hours per day. The member terminates employment after 75 days. How many compensated hours do I report?
5. Can we hire a retired teacher and if so how do we report them?
6. Do you report substitute teachers to TFFR?
7. Do I need to file an Employer Payment Plan every year?

1. What type of retirement plan is Teachers' Fund for Retirement (TFFR)?

   TFFR is a qualified defined benefit public pension plan covered under Section 401(a) of the Internal Revenue Code (IRC). North Dakota Century Code Chapter 15-39.1 and Title 82 of the North Dakota Administrative Code govern the retirement plan.
    

2. What types of salary are reportable to TFFR?

   Reportable TFFR salary is a member's earnings in eligible employment for teaching, supervisory, administrative, and extracurricular services during a school year reported as salary on the member's federal income tax withholding statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125, 132(f), 401(k), 403(b), 414(h), or 457.

   Once a member is contracted to perform teaching, supervisory, administrative, or extracurricular services, additional pay earned by the member is considered a part of retirement salary, even if no written agreement exists.

   TFFR Salary does not include fringe benefits such as payments for unused sick leave, personal leave, vacation leave, housing allowances, transportation expenses, early retirement incentive pay, severance pay, any payments conditioned on or made in anticipation of retirement or termination, medical insurance, workers' compensation benefits, disability insurance premiums or benefits, recruitment bonuses, teacher aide pay, referee pay, bus driver pay, janitorial pay, or salary received by a member in lieu of previously employer-provided fringe benefits that are made on an individual selection basis.
    

3. If I have a teacher that leaves half way through the year, when do I report the last date worked and compensated hours?

   If a member resigns, retires, or dies before the end of the school year, the member's total compensated hours and last date worked must be reported on the monthly report/diskette following termination. Example : A member signs a contract for 182 days for 8 hours per day. The member terminates employment after 75 days on December 15. The compensated hours and last date worked are reportable on the December report filed January 15.
    

4. I have a member that is contracted for 180 days for 8 hours per day. The member terminates employment after 75 days. How many compensated hours do I report?

   Compensated hours is the total number of hours a member is employed and compensated for in a school year (not to exceed 700 hours). To calculate total compensated hours you multiply total days worked during the fiscal year X hours worked each day, (8 hours X 75 days = 600 hours).
    

5. Can we hire a retired teacher and if so how do we report them?

   Under the General Rule, a retired teacher cannot return to TFFR-covered employment until 30 calendar days elapse from the member's retirement date. A retired teacher can then return to covered employment for a maximum annual hour limit and continue receiving a monthly retirement benefit. Exceptions to the general rule allow retirees to return to TFFR covered employment and exceed the annual hour limitation.  Under all re-employment options, employer contributions are required on all retirement salary paid to the retiree. See the Return to Work brochure.  When a retired teacher is hired, the employer must notify TFFR by completing the Retired Member Employment Notification Form. 

   If the retired teacher works more than the maximum hours allowed, a Member Action Form must then be completed.
    

6. Do you report substitute teachers to TFFR?

   The general rule is that substitute teachers are not reportable to TFFR since they are not contracted teachers. The only time a substitute teacher is reportable is if the teacher is under a contract (written agreement) to perform the substitute teaching services (long term sub for maternity leave, medical leave, educational leave, etc.). Substitute teaching is also reportable if the teacher is already under a time certain contract to perform teaching services, and while under the time certain contract, performs substitute teaching duties. If the teacher performs noncontracted substitute teaching duties outside of the time certain contract, the substitute teaching compensation is not reportable.
    

7. Do I need to file an Employer Payment Plan every year?

   No. An employer is only required to file a new Employer Payment Plan form when the employer wishes to change the model or amount of contributions paid by the employer in lieu of a salary increase.