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TFFR Employer GuideReporting InformationEmployer's Report of Member and Employer ContributionsAll public school districts and state institutions are required by law to make monthly payments of contributions and submit monthly reports via diskettes, internet, or paper. Reports must be in a format that is approved by TFFR. Payment of member and employer contributions and the monthly reports must be mailed to RIO by the 15th day of the month following the month in which the members' salaries are paid. If the 15th of the month falls on a weekend or holiday, the payment and report are due on the next business day. Employer contributions due on August 15 are for all members earning a salary in July. This includes administrators whose contracts begin on July 1 and classroom teachers teaching summer school in July. In all reporting formats (paper or electronic) the employer/school district is responsible for ensuring the information is true and correct, and that only authorized representatives submit such information to TFFR. Any person who knowingly makes a false statement, falsifies, or permits to be falsified, any record or records in an attempt to defraud TFFR are guilty of theft and are punishable under the laws of the state of North Dakota.
Electronic ReportingAn employer can use the computer to file monthly TFFR information. If your employer has the appropriate software, TFFR reporting can be very simple. Contact the administrative office for details on how to begin reporting electronically.
Paper (Manual) Reporting(see Form/Reports - Employer's Report of Member and Employer Contributions)
Employer Reporting NotesNote: The amount reported must equal the amount paid to TFFR each month. Example: If the employer reports the June, July, and August payroll on the June report, the amount paid to TFFR should agree to the total member and employer contributions for those months. Do not wait until the individual payroll runs are completed. Note: Individuals who get pay checks in July and August, but will not work in those months, have already earned the pay. Report all member and employer contributions in the school year in which the pay is earned. Example: A teacher is paid twice a month. Prepare one report for the month after the second payroll is run, but before the month is closed out. Your system should compile the two pay periods together. Example: A teacher is contracted to teach 9 months, ending in May, but receives a pay check over 10, 11, or 12 months. June, July, and August payroll runs for the current school year must be compiled on one report (June). Note: If an employer has no member and employer contributions to report, the employer must notify TFFR in writing that they will not be reporting anything for that month.
Errors on Employer ReportsBe sure the information on the monthly reports and/or Certification of Member Employment form is correct. Overpayment of refunds or monthly benefits based on inaccurate reporting by the employer will become the liability of that employer. Account adjustments must be in writing.
Employer Summary ReportTFFR will mail out an Employer Summary Report that lists all reported members and the total fiscal year-to-date information at the end of October, January, April, and August. Please review the following data each month to verify its accuracy:
Please take time to review the Employer Summary Report. The following information will assist you when reviewing the report:
If any of the above information is incorrect, please contact the administrative office in writing.
Year End ReportingThe final report must be postmarked no later than July 15th. At year-end, all salaries earned during the fiscal year but not yet reported to TFFR must be submitted on the final report. Additionally, all member records must be closed out before TFFR can proceed to the next fiscal year. Payments to teachers or administrators made after June 30, that are for work performed prior to June 30 must be reported on the final report. Example 1: A member is contracted to teach 9 months and agrees to get paid over 12 months. The contract is for $30,000 and is to start September 1. The member would have $2,500 ($30,000 ÷ 12) reported for the months of September through May (total of 9 months). On the June report, the member would have $7,500 ($30,000 ÷ 12 × 3). Example 2: A member is contracted to teach 12 months beginning July 1, for $48,000. The member would have $4,000 ($48,000 ÷ 12) reported each month beginning July and ending June. Example 3: A member is contracted to teach 9 months and agrees to get paid over 12 months. The contract is for $30,000 and is to start in September. The member is also contracted to teach a summer school program (i.e. drivers education) for $3,000. The summer school program runs from June 1 through July 15 (20 days in June and 10 days in July). The member would have $2,500 ($30,000 ÷ 12) reported for the months of September through May (total of 9 months). On the June report, the member would have $9,500 ($30,000 ÷ 12 × 3) + ($3,000 × 20 days ÷ 30days). Remember that all salaries are reportable in the school year earned regardless of when the salaries are paid. To close the teachers' records, TFFR needs compensated hours and last date worked for all members. We are unable to record one without the other. The final report must include the compensated hours and last date worked.If a teacher is employed by two employers under separate contracts, each employer will report their compensated hours and last day worked.
Note: Last date worked is reported as mmddyyyy. Do not write out the dates on the monthly report or input the date as mmyyyy. Note: If an employer has already closed the year and has no additional contributions to report, the employer must notify TFFR, in writing, for the months that they will not be reporting. In late August TFFR will mail the final fiscal year Employer Summary Report that lists all members reported, contract/additional TFFR salary, retirement salary, taxed member contributions, tax-deferred member contributions, employer contributions, last date worked, total hours. Please review this report. If any information is incorrect, contact the administrative office as soon as possible. Account corrections must be in writing.
Changing Employer InformationThe employer is responsible for keeping TFFR informed of the employer's current mailing address, telephone and fax numbers, business manager and superintendent's/administrator's names. Employer changes must be in writing. Please complete the Notice of School District Change form to notify our office.
Penalty For Late Payments / ReportsThe TFFR Board is bound by law to take action if an employer fails to remit the monthly payments and/or file any of the required reports by the due date. Employers that do not meet the established deadlines will be assessed a civil penalty of $250 and interest of eight percent compounded annually on the amount due. We are also required to notify the Department of Public Instruction to withhold state foundation payments until all TFFR reports are made and payments, penalties and interest are paid. Please avoid this problem by ensuring that your TFFR reports and payments are postmarked no later than the due date.
New MemberA Member Action Form must be completed when a participating employer hires or rehires a teacher (see Forms/Reports - Member Action Form). This form provides TFFR with important information including the member's legal name, social security number, current mailing address, and beneficiary/beneficiaries. Designating a beneficiary/beneficiaries allows the member to direct payment of survivor benefits in the event of the member's death. This form also lets TFFR know if the member is:
Note: If we do not receive the Member Action form within 30 days from the date the member is first reported to TFFR, the employer may be assessed a $250 penalty for late reporting.
Dual MembershipDual membership provides portability to members with service in TFFR and Public Employees Retirement System (PERS), and/or the Highway Patrolmen's Retirement System (HPRS). For vesting and retirement eligibility, the years of service in these systems will be added together, with service not to exceed one year of credit in any fiscal year. Example: A teacher age 58 with 25 years of TFFR service credit and 2 years of PERS service credit is eligible to retire under the Rule of 85. Age 58 + service credit 25 + 2 = 85. Employees working multiple jobs in a school district that requires participation in TFFR and PERS will be reported to both systems based on job duties. Example: Exception: Employees who elected to remain under the old law, which required multiple jobs under dual membership to be reported to the retirement system with the most service credit on file. At retirement, dual members will be given the option of receiving their retirement benefits from TFFR and the alternate retirement plan under one of the following calculations:
Employing a Retired TeacherRetired TFFR members may return to TFFR covered employment under certain employment limitations. The limits apply to TFFR covered employment which includes teaching, supervisory, and administrative duties in a ND public school or state institution covered by TFFR except for extracurricular duties and professional development. For excluding hours toward the retiree annual hour limit, extracurricular means any duty outlined in the extracurricular schedule of an employer’s master agreement, unless the duty was part of the retiree’s regular job duties and base salary prior to retirement. The limits do not apply to:
Non-contracted substitute teaching does not apply to the annul hour limit. However, in-staff substitute teaching performed during an existing contracted period will apply to the annual hour limit. Keep in mind that under both federal and state law, a teacher must terminate employment in order to be eligible to retire and receive retirement benefits. Therefore, at the time of retirement there can be no written pre-existing agreement indicating re-employment after retirement. After the applicable waiting period (if any), should a school district employ a retiree, both the retiree and the employer must notify TFFR by completing a “TFFR Retired Member Employment Notification” form within 30 days of employment. This form, along with a copy of the retiree’s contract or employment agreement, must be submitted to the administrative office each year the retiree is employed. Employer contributions must also be paid on all retirement salary paid to the retiree, including in-staff subbing, extra-curricular, and professional development pay. Failure to notify TFFR or pay the correct employer contributions will result in a $250 penalty for the employer and suspension of one month of retirement benefits for the retired member. If a retiree performs teaching, supervisory, or administrative duties for more than one TFFR covered employer, all hours worked for all covered employers must be counted toward the annual hour limit. Because of the impact returning to work could have on the retiree’s retirement benefits, we strongly encourage the retiree to contact our office to discuss all options. The following is a description of the retiree employment options: General Rule - Annual hour limit 9 month contract = 700 hours Example:Jane Teacher retires July 1, 2007, and begins collecting monthly TFFR retirement benefits. On August 1, she signs a contract with a ND school district to work for 700 hours during the school year (4 hours/day for 175 days) as an English teacher. With the exception of extra-curricular duties and professional development, all compensated hours count toward the 700 hour limit. Jane and her employer complete a TFFR Retired Member Employment Notification form and submit to TFFR for approval. Jane receives salary from the school district for the part-time employment; employer contributions are paid to TFFR on all retirement salary, including in-staff subbing, extracurricular duties and professional development; employee contributions are not paid to TFFR; and Jane continues to receive her monthly TFFR retirement benefit while teaching part-time. Exception A - Critical Shortage Area A retiree may return to TFFR covered employment in an approved critical shortage area (CSA) and exceed the annual hour limitation without losing retirement benefits. If retired on or prior to January 1, 2001, no waiting period is required. However, if the retirement date is after January 1, 2001, a one year waiting period is required before the retiree can consider this option. A retiree may perform non-contracted substitute teaching during the one year waiting period. Critical shortage areas will be determined each year by the Education Standards and Practices Board (ESPB) by rule. Each year, the retiree must re-apply for this exception and receive verification that it remains a critical shortage area. Like the General Rule, monthly retirement benefits will continue; employer contributions will be paid to TFFR on all retirement salary; employee contributions will not be paid to TFFR; and the member’s monthly TFFR benefit amount will not be affected. Example:John Teacher retires July 1, 2007, and begins collecting monthly TFFR retirement benefits. He does some substitute teaching in 2007-08, then returns as a full time teacher on July 1, 2008, in an approved critical shortage area. John and his employer complete a TFFR Retired Member Employment Notification form and submit to TFFR for approval. John receives salary from the school district for the full-time employment; employer contributions are paid to TFFR on all retirement salary; employee contributions are not paid to TFFR; and the retiree continues to receive his monthly retirement benefit while working full-time in a critical shortage area. Exception B - Benefit Suspension and Recalculation After 30 days elapse from the retirement date, a retiree may return to TFFR covered employment and exceed the annual hour limitation. A TFFR Retired Member Employment Notification form must be completed and submitted to TFFR for approval within 30 days of employment and employer contributions will be paid on all retirement salary. Under this option, the TFFR benefits will be suspended the first of the month following the month the annual hour limit is reached. At that time, both employer and employee contributions must be paid on any salary earned after the annual hour limit based on the employer’s TFFR payment model. In addition, a completed Member Action form is required. Reportable salary is another point to consider if you are reporting a retiree after the annual hour limit and the retiree is paid over more more months then they actually work. Example:Sally Teacher retires July 1, 2007, and begins collecting monthly TFFR retirement benefits. On August 1, she signs a contract with a ND school district to work for 900 hours during the school year (5 hours/day for 180 days) as an English teacher. (Critical shortage does not apply since one year waiting period was not met.) Employer contributions only are paid on retirement salary earned until the annual hour limit is reached. Sally receives salary from the school district for the nine months of part-time employment paid over 12 months. Sally reaches the 700 hour limit on March 15, 2008, and her TFFR benefits are suspended on April 1. The employer must begin reporting Sally on the March report for the salary earned after March 15 and pay both employer and employee contributions based on the employer model. Since Sally’s contract is paid over 12 months, the amounts the employer reports for March, April, and May will be less than the actual salary earned, and the June report for the final three payments will create an overpayment to TFFR. This situation can be manually corrected at year end or, if possible, ask retirees returning to covered employment to receive their pay over the contracted months for the first year back. This is not an issue after the first year, only the year of suspension. Upon re-retirement, the retiree's benefits may be recalculated. If re-retirement occurs with:
Teacher's AideThe general rule is that teacher’s aides are not reportable to TFFR. However, an individual that is issued a teacher’s aide contract or written agreement, holds a valid teacher’s certificate, and meets the requirements for the particular grade level in which the individual is working – is reportable to TFFR if the individual is actually performing teaching duties. When trying to decide if the teacher’s aide is providing teaching services, review the job duties.
Substitute TeacherThe 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:
If a teacher performs non-contracted substitute teaching duties outside of a time certain contract, the substitute teaching compensation is not reportable.
Reducing Salary/Hours to Pay for a Substitute TeacherIf a TFFR member's salary is reduced to pay for a substitute teacher, the corresponding number of days or hours must be deducted from the days taught when calculating the compensated hours for TFFR purposes. Example: A member misses one day of work and the substitute teacher's pay is deducted from the member's salary. One day must be subtracted from the contracted hours when determining the compensated hours. If a member has ½ of the substitute teacher pay withheld from his/her pay, that member's contracted hours should be decreased by ½ day when figuring out the compensated hours.
Summer School and Summer ProgramsSummer school teaching and summer programs like driver’s education are generally reportable to TFFR because the teachers are under contract with the school district. To ensure proper documentation for all TFFR reportable summer employees, school districts should issue written agreements for summer programs. In some cases, the district may not issue summer school contracts to any of its summer school teachers, but hires all their summer school teachers from within the district. If so, the summer school teaching is reportable to TFFR because the teachers are already contracted with the district. However, if the district does not issue summer school contracts to any of its summer school teachers, but hires a summer school teacher from outside the district, only the summer school teacher from outside your district is not reportable to TFFR. Summer school programs are reportable in the fiscal year in which the pay is earned. Salary earned for most summer programs (including driver’s education) will be reported in two fiscal years. Example:A licensed member is contracted to teach a summer school program (i.e. driver’s education) from June 1 through July 15 (20 days in June and 10 days in July). The employer needs to report the salaries and hours for the work performed (earned) from June 1 to June 30 on the June report and the salaries and hours for the work performed (earned) from July 1 to July 15 on the July report regardless of when the salaries were paid.
Leave of AbsenceA Member Action Form must be completed when a member is granted a leave of absence and another is required upon the member's return to TFFR covered employment (see Forms/Reports - Member Action Form). Members on a leave of absence may not refund their TFFR account or begin regular retirement benefits. However, TFFR disability benefits may be paid if a member is on medical leave and has used, forfeited, or been paid out of all of their sick leave benefits. Types of Leave:
Member Who Terminates Employment (resignation, retirement, disability or death)If a member resigns, retires, becomes disabled, 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 following termination, in addition to contract/additional TFFR salary, retirement salary, and contributions. The business manager may also need to complete a Certification of Member Employment form for members who meet special circumstances such as death and disability claims, mid-year terminations and retirements, refund waiver requests, etc. (see Forms/Reports - Certification of Member Employment). Keep a copy of this form for your records. This information is very important and must be accurate. It is the basis for determining how much a member will receive in retirement or refund benefits. Any errors could create an additional liability for the Fund which, in turn, will revert to the employer. If information changes after the form or report is submitted, contact the Fund's administrative office as soon as possible.
Employer Service PurchaseUnder current law, teachers are allowed to purchase service credit for use toward retirement eligibility. Employers may also purchase service credit on behalf of TFFR members. Employer service purchases may be made under the following conditions.
To implement this provision, employers will need to develop specific guidelines to be followed in deciding for whom they will purchase service. For example, an employer may wish to use the employer service purchase feature as part of an early retirement program or employee retention program. In developing guidelines, the employer must comply with the federal Age Discrimination in Employment Act (ADEA) and other federal and state laws. TFFR must also determine compliance with Internal Revenue Code Section 415 benefit limitations. Employers should work with legal counsel in developing appropriate policies to ensure legal compliance. TFFR is not itself a party to the agreement between the employer and the member. In general,TFFR will provide the purchase price amount to the employer, and if the service is purchased,TFFR will credit the service to the member. Any employer interested in purchasing service credit on behalf of a member should contact the Administrative Office for a cost estimate and employer service purchase form.
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